Friday, August 7, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
A MEASURE seeking to extend for another three years the exemption from amusement tax for movie theaters showing local films has been filed with the Quezon City council.
The proposal, which seeks to extend the implementation of Ordinance No. SP-1718 enacted in 2006 which gives a tax holiday to movie theaters showing local films, was filed by Councilor Antonio E. Inton, Jr. last July 29.
In a phone interview yesterday, Mr. Inton said implementation of the tax holiday will expire on October of this year.
"We understand the many challenges that the movie industry is faced with at the moment, what with the local economic situation and a deluge of highly popular foreign films," Mr. Inton said.
"It is the city’s simple way of helping out an industry that has helped many of our residents."
He said that the city’s foregone taxes from the scheme amounts to about P2 million per year which the local government can afford to lose if only to help the local film industry. He noted that the city is home to many movie stars and workers in the industry.
Sought for comment, City Treasurer Victor B. Endriga said yesterday that he is in favor of the extension of the tax holiday for another three years as an incentive to the local film industry to produce more local films.
The city government was able to collect P10 billion worth of taxes in 2008, despite the global economic crisis. In 2007, it collected taxes totalling P9.067 billion.
Last May 21, Republic Act No. 9640 lapsed into law which states that local governments may levy an amusement tax on operators of theaters, cinemas, concert halls, circuses, boxing stadia, and other places of amusement at a rate of not more 10% of gross receipts from admission fees.
That law amended Section 140 of the Local Government Code of 1991, which set a ceiling of 30% of gross receipts from admission fees. — Louella D. Desiderio
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