Tuesday, October 21, 2008 City mulls exempting Pinoy films from amusement taxes
IN A bid to help the ailing local movie industry, the Makati City Government will exempt Filipino movies from amusement taxes.
Mayor Jejomar Binay said he has already asked the Makati City Council to approve an ordinance that will amend the City’s Tax Code. He said the measure will help the Philippine movie industry, and save the jobs of thousands of movie workers.
In response, the Makati City Council has drafted Ordinance No. 2008-042, which amends Section 3F.01 Article F. on Amusement Tax of the 2004 Revised Makati Revenue Code, to completely exempt from payment of amusement tax all Filipino films shown in all movie houses in the city.
Meanwhile, Binay also appealed to other local governments to also consider exempting Filipino movies from amusement taxes in their localities.
He described the movie industry as excessively taxed.
“Aside from rampant film piracy, the decline in the number of film productions and the rise in the number of unemployed movie workers may be directly attributed to excessive taxation,” Binay said.
“We cannot expect the Filipino movie industry to survive if government continues to impose excessive taxes,” he added.
The Philippines ranks among other countries that collect the highest amusement taxes, consisting of 30 percent amusement tax plus 12 percent VAT and other taxes.
The mayor cited figure showing a substantial decrease in the number of locally produced films. From over 200 annually in the 1970s to an average of only 82 from 1998 to 2003, the number has gone down to 56 films in 2004, 53 films in 2005, 50 films in 2006, 47 films in 2007 and only 22 films so far in 2008.
“We hope that by exempting Filipino movies from the 30 percent amusement tax in Makati, we can help the thousands of workers and encourage producers to continue making movies,” Binay further said.
There are 31 movie houses in Makati. Glorietta has the most number with 11 cinema houses followed by Greenbelt with seven; Powerplant, six; Waltermart (Cinema 2000), four; and ABC Mall (SM Moviehouses), three. (AH/Sunnex)
