Manila government to waive amusement taxes on local films

Sure, you can’t fight foreign films in the battle for moviegoers’ attention. But that’s not the end of the world. As the eldest Baudelaire child in Lemony Snicket’s Series of Unfortunate Events said, there’s got to be something.

Manila Mayor Lito Atienza thought of that something and came up with a wonderful idea. Why not waive all — yes, 100 percent – amusement taxes on all local films shown in Manila to help the ailing movie industry? That would be a great move in lieu of the traditional Manila Film Festival held to celebrate Araw ng Maynila in June 24 year in and year out.

Let’s face it. Big foreign films open in June, leaving the small-budget though creatively-executed Pinoy film with nowhere to go except straight to box-office doom. So why fight windmills? Fight another way — in a turf where you have control over. And that, Atienza figured, was right where the Filmfest started way back 1966: Manila.

After conducting a thorough study of local cinema and discovering that only 57 films were shown last year, the Manila Mayor put his foot down. This year’s Araw ng Maynila, celebration, he decreed, will highlight the plight of the local film industry. The traditional Filmfest must be postponed. Why have a local filmfest that won’t hold a candle to foreign competition anyway? You’re just wasting precious time, money and effort.

So starting Friday, June 24, Araw ng Maynila, the city government in Manila will no longer charge amusement taxes on local films shown in downtown theaters. This means more profits for local movie producers, which they will hopefully use to make more films, improve their products, and employ more people. The theme for this year’s celebration – "Buhayin ang pelikulang Pilipino" — says it all.

"I believe in film as a medium of education and recreation," Atienza explains his move. "It can mold a better generation of Filipinos. Then there’s the economic factor. Helping local cinema will make it competitive to other countries. We have lots of talents who can’t compete with our neighboring countries because of the economic factor. A strong local cinema will also promote jobs and income among the people."

No wonder Atienza’s initial dialogues with the management of Robinsons, SM and other theater owners in Manila have been encouraging. They not only support the move, Atienza says they are even excited about it.

Atienza also found an ally in Rep. Miles Roces of the third district of Manila. Roces, whose family owns Ideal Theater in Avenida Rizal, where Good Earth Emporium now stands, has a soft spot for local cinema. After all, film distribution has been their family business ever since and an uncle — Marc – is still into the trade.

Roces will file a bill in Congress that will remove amusement taxes on local films by 100 percent. He will also ask that taxes be removed on raw materials used in making Filipino movies to drastically cut down production cost.

"Local movies are the highest-taxed in the world," Roces reveals. "Removing amusement taxes on local movies will encourage independent film producers to make more movies."

Roces however, knows he can’t save an ailing industry alone. He is asking the help of industry people in lobbying for the bill. After all, he says, the bill, when passed into law, will have a nationwide effect.

"Admission tickets on movie houses will go down. More moviegoers will watch local films, and local cinema will yield more quality products," he says.

Contrary to what other people think, Roces adds, film is not a non-essential industry. Thus, his bid to remove taxes on raw materials for films. But first, the industry must prove it’s worthy of such a 100 percent tax cut.

He plans to file the bill before Congress goes on recess so it can be tackled as soon as the law-making body re-opens in July.