Firms to pay 10% amusement tax

CAGAYAN de Oro City Government is requiring establishments in the city that would show Manny Pacquiao's fight live on Sunday, November 14, to pay a 10 percent amusement tax.

City treasurer Lino Daral said malls, bars, restaurants, movie houses and hotels that charge an additional amount for the live showing must pay for amusement taxes for the additional service.

Daral said his team of inspectors will go to every establishment in the city to inform them of the additional tax, which will be paid during the filing of taxes in January next year.

"Establishment owners showing the fight are reminded to pay 10 percent of the gross admission price as amusement tax," Daral said, emphasizing that the amusement tax was based on Section 125 of the Bureau of Internal Revenue, which states that "there shall be collected from the proprietor, lessee or operator of cockpits, cabarets, night or day clubs, boxing exhibitions, professional basketball games, jai-alai and race tracks, a tax equivalent to 18 percent in the case of cockpits, and 18 percent charge to the cabarets, night or day clubs, and 10 percent for any boxing exhibitions."

For the purpose of the amusement tax, he said, the term "gross receipts" embraces all the receipts of the proprietor, lessee or operator of the amusement place, which also includes income from television, radio and motion picture rights, if any.

Daral said the amusement tax, under a local city ordinance, has been reduced to 10 percent from 30 percent.

"Those who fail to pay the amusement tax will pay an additional two percent penalty on the taxable amount per month of delay," Daral said.

He added that the City Government also has the option to prosecute establishments that refuse to pay the appropriate amusement tax despite repeated demands.

The much awaited fight between Pacquiao and Antonio Margarito for the World Boxing Council super-welterweight title will be held on November 13, Saturday (November 14, Sunday in Manila) at the Cowboys Stadium in Arlington, Texas.

Daral said Mayor Vicente Emano has ordered for a live showing of the fight for the less-fortunate at the Cogon and Carmen public markets. The showing will be free from the 10 percent amusement tax since it is also offered for free. (Nicole J. Managbanag)