CEBU, Philippines - The Cebu City Council is working on an ordinance that would reduce the amusement taxes in the city to only 15-percent.
Vice Mayor Joy Augustus Young said he is working with Councilor Jose Daluz III in the drafting of the proposed ordinance seeking to reduce the current 30-percent amuse tax charged to establishments or organizers of events and other forms of amusements in Cebu City.
The city’s tax ordinance fixed the amusement tax at 30 percent of the gross sales or income of theaters, cinemas, concert halls, circuses, boxing stadiums and other places of amusement.
But Young believes that the 30 percent is already a burden to the organizers. The high rate of amusement tax is also the reason why many organizers of concerts and events would ask the council for tax exemption.
Young said that reducing the amusement tax would encourage more organizers and producers to hold concerts, shows, entertainments and other kinds of events in Cebu City.
This shall complement the thrust of the city to become an “Event City” that would be visited not only by local but foreign tourists as well.
Young supports the vision of the Mayor to hold an event at least once a month.
Cebu City already has the yearly Sinulog Festival that is joined by millions of people around the world.
Young said that they may now start improving other festivals like the Flower Festival every November, the Buhing Kalbaryo every Lenten Season and the recently launched Chinese Festival every February.
Daluz said that consultation is ongoing for the proposed ordinance because they had to get the opinion of the City Treasurer’s Office regarding the matter.
The collection of amusement tax is under the CTO and amusement tax is one of city’s sources of earnings. The city earns at least P40 million a year from amusement taxes. - (THE FREEMAN)