Monday, August 27, 2007 City Hall dangles tax cuts, breaks to draw events
ORGANIZERS of concerts, sports events and similar activities can expect some help from the Cebu City Government where amusement taxes are concerned.
City Councilor Sylvan Jakosalem said the City Council will be granting more tax exemptions to encourage organizers to hold events in Cebu.
Although it could mean a loss of potential income for the City, it will also help promote Cebu City as the entertainment capital of the Philippines, he said.
Jakosalem said the benefits will outweigh whatever taxes the City would have collected.
“Hopefully, we can have more foreign artists holding concerts here if enough incentives and support is given to them by the City. We realize these types of concerts cost the producers large investments so we will not hesitate to give what we know will ensure their project’s success,” he told Sun.Star Cebu.
Jakosalem is also hopeful that in being offered full tax exemptions, producers and organizers will be encouraged to lower ticket prices to make concerts affordable for Cebuanos.
In last Wednesday’s session, the council granted full amusement tax exemption to the organizers of the Universal Reality Combat Championship, a mixed martial arts event to be held on Sept. 1.
Sacred Heart School for Boys also asked to pay only 10 percent amusement tax for a musical comedy show, but the council decided to give the organizers full tax exemption.
Jakosalem said there is no need to further amend the Cebu City Omnibus Tax Code as it was already amended three years ago to allow full amusement tax exemption, if allowed by the council.
“So the prerogative will still be with the council and the mayor to review each concert or event and decide if it merits full tax exemption. The loss of some taxes is still an issue but the benefits will outweigh it if we do it right,” he said.
If exempted by the council, organizers will be asked to donate a portion of the ticket proceeds to a City Government-accredited charitable institution.
They will also have to submit details on ticket prices, seating capacity and security plans, which the council will use as basis to determine if they should be exempted from paying amusement taxes. (LCR)
