CEBU, Philippines - City Councilor Jose Daluz III is studying the possibility of reducing the amusement tax imposed on businessmen who are venturing into adventure parks and other related establishments.
Daluz, chairman of the committee on budget, finance and appropriations, said he is planning to reduce the amusement taxes from 30 percent to five percent.
According to Daluz, he had met a businessman, who manages an adventure park in a mountain barangay, and discussed with him the plan to reduce amusement taxes.
Daluz said some businessmen informed him that they are paying the city at least P200,000 annually as amusement tax for their business.
“There must be a commensurate lowering of the amusement tax burden being imposed. This is an incentive for them and encouraged them to invest their business to venture this kind of business like adventure park, zip line, family park and others,” Daluz said.
Daluz added his proposal will further spur business growth in the city and help the business sector once the amusement tax is decreased.
Cebu City Mayor Michael Rama, in a separate interview with the reporters, said he is amenable to decrease the amusement tax from 30 percent but to only 10 percent.
“I’m willing pero dili lang five percent but 10 percent,” Rama said.
The mayor believes it is also about time for the city government to lower the amusement taxes on these kinds of businesses.
In line with the Republic Act No. 9640 enacted by Congress in August 2009, local government entities are allowed to “levy an amusement tax to be collected from the proprietors, lessees, or operators of theaters, cinemas, concert halls, circuses, boxing stadia and other places of amusement at a rate of not more than 10% of the gross receipts from admission fees.” (FREEMAN)