This bill seeks to re-impose gross receipts tax (GRT) on services rendered by banks, non-bank financial intermediaries, finance companies and other financial intermediaries not performing quasi-banking functions. It introduces certain structural changes intended to harmonize the tax system with banking practices consistent with generally accepted accoounting principles and the requriements of the Bangko Sentral ng Pilipinas. The re-imposition of the GRT is a more practical alternative to the value-added tax (VAT) on banks and other financial institutions. The VAT on banks and other financial intermediaries is not only difficult to determine but may also have adverse effects on key segments of the financial services market. The GRT system facilitates tax administration and compliance, rationalizes the sharing of the tax burden on financial transactions and is not expected to have a tremendous effect on the consumers of financial services.