Sunday, February 24, 2008 City Council sets hearing on proposal to scrap amusement, amelioration taxes
STAKEHOLDERS are encouraged to show up and say their piece during the March 19 public hearing on proposed Cebu City ordinances that seek to scrap amusement and amelioration taxes.
And to reach a wider number of interested parties, the City Council will publish in local papers as soon as possible the invitation to attend the consultation.
Councilor Augustus Pe Jr. suggested the public hearing schedule’s publication after Vice Mayor Michael Rama asked that it be widely disseminated.
Councilor Hilario Davide III is proposing that the 30 percent amusement tax on shows and concerts and “social amelioration tax” on entertainment spots and related establishments be scrapped.
He said that “there seems to be an ineffective enforcement of the amusement tax, particularly on live performances such as concerts.”
He added that the amusement tax has discouraged production outfits from organizing shows here, while cities in Metro Manila have stopped asking for it to stimulate growth.
Davide believes doing away with it “boosts tourism and encourages more local and foreign organizers, producers, or promoters to bring their shows to Cebu City.”
Arguing that scrapping the tax does not affect the City’s coffers, he said the amusement tax revenue just composes six to seven percent of the total tax collection, and is therefore “not a significant source of revenue.”
In 2006, the City Government collected P46.2 million in amusement taxes. This represented about 5.2 percent of the City’s total tax income of P879.8 million.
On the social amelioration tax, which is P1 for every customer or patron, he said it is not clearly recorded, so that collectors resort to “averaging.”
The payments are intended for a social amelioration trust fund, which Davide said is neither clearly defined nor used.
He proposed the taxes’ abolition in relation to the City’s policy and continuing efforts to create an environment friendly to businesses.
City Treasurer Tessie Camarillo and the council committee on budget and finance headed by City Councilor Jose Daluz III, however, were not in favor of his proposals.
Camarillo hoped that the council would just lower the tax instead of giving it up, while Daluz said that the over P40-million revenue could go a long way.
Mayor Tomas Osmeña also said that instead of abolishing the amusement tax, only sports events and concerts should be exempted so that movie houses and other entertainment spots are still taxed. (RHM)
