Council denies tax exemption for Pacquiao match screening

The City Council has denied the request of MP Promotions, organizer of the special screening of the much-anticipated Manny Pacquiao-Oscar Larios match at movie houses in SM City Cebu on Sunday, for a full exemption of amusement taxes.

While those councilors who voted for the exemption outnumbered those who opposed, Councilor Jocelyn Pesquera pointed out that the six councilors who approved the request still did not reach the majority based on those present in last Wednesday's session.

Councilor Rodrigo Abellanosa also pointed out that the city would not be able to benefit from the event if it would have full tax exemption. During the sensational fight between Pacquiao and Mexican boxer Eric Morales in January, the city earned at least P1 million.

Councilor Sylvan Jakosalem suggested a compromise deal under which the city would sponsor the event and subsequently collect 10 percent of the income. But his proposal was not carried.

Considering that more fights are anticipated from Pacquiao, Abellanosa reasoned out that granting the tax exemption would serve as precedent to future events, something that would not benefit the city.

Those who voted for the exemption were Councilors Arsenio Pacaña, Procopio Fernandez, Edu Rama, Jakosalem, and Rodolfo Estela. Those who opposed were Councilors Joey Daluz, Edgardo Labella, Abellanosa, and Nestor Archival.

Pesquera and Councilors Gabriel Leyson and Gerardo Carillo abstained from voting.

The request for tax exemption was made through a resolution filed by Jakosalem, who said it is befitting for the council to support the event considering that Pacquiao "comes with the weight of the entire nation on his shoulders."

"Pac Man has rejuvenated the sport of boxing like many of those before him and brought the system and firm beliefs of an entire nation as backup, thus, it is just befitting that we support this upcoming event and give any assistance to anyone that supports this endeavor vis-à-vis by making the said experience available for viewing for us to witness," the resolution reads.

Under the city's Omnibus Tax Ordinance, "the holding of operas, concerts, dramas, recital, painting and art exhibitions, flower shows, musical programs, literary oratorical presentations shall be exempted from the payment of the amusement tax, subject to the approval of the Sangguniang Panlungsod of their duly filed application for exemption." - Joeberth M. Ocao