Saturday, October 20, 2007 Mayor favors scrapping 30% amusement tax
CEBU City Tomas Osmeña believes that scrapping the 30-percent amusement tax on shows and concerts and the social amelioration tax on entertainment spots and related establishments will give Cebuanos more opportunities to see international shows.
In a news conference yesterday, the mayor expressed his support to the proposal of Councilor Hilario Davide III, who believed that canceling the amusement tax will simplify the tax system and encourage more productions in the city.
The City Government collected P46.2 million in amusement taxes for last year, or 5.2 percent of the City’s total tax income of P879.8 million.
“I think we should do that. For one, we are depriving the Cebuanos from having concerts here because many of the concerts are not financially feasible here. There is a band performing in Manila, but why are they not performing in Cebu? The promoter would reason out, the amusement tax is making it hard for them to make money,” he said.
‘Unethical’
He added that it is “very expensive and hideous” to collect amusement taxes because of all the personnel involved in the collection.
“It could become a form of unethical behavior, like when the personnel would ask for free tickets in exchange for something. There are many other things they could do.
Also, several shows would ask for exemptions. So why not just cancel the tax?” he said.
Price to pay
But Osmeña, like Davide, is not worried that scrapping the tax will affect the City’s income.
“We will be making a lot of money by next year. Right now, we are suffering but that is part of the price to pay. We’ll have a pay-off once we will be making dividends next year,” Osmeña said.
He even disclosed that City Hall will be giving out P1,000 for senior citizens on their birthdays and P2,000 in Christmas next year. (NRC)
