Movie industry lauds OK of Amusement Tax Bill

MANILA, Philippines - “We are grateful to all the lawmakers who supported the bill that will help the movie industry.  Because of the reduction in the amusement tax, producers will be encouraged to produce more films and will result in more jobs for members of the entertainment industry,” says Orly Ilacad, Philippine Motion Pictures Producers Association (PMPPA) president.

Local movies continue to be a source of pride and entertainment for Filipinos.  Locally-produced films have consistently gotten the nod of various international award-giving bodies, while watching movies remains among the top choices of entertainment among the Filipinos. Despite these, however, the number of local movies continues to decline, year after year.

“In the ‘90s, an average of 160 films were produced annually.  However, in the year 2000, only 80 films were produced.  It dipped further in 2007 where only 47 films were produced.  With this bill, we are confident the number of locally-produced films will increase significantly,” shares Ilacad.

“Nowadays, with only a meager percentage of earnings left to producers, producing films not only becomes unprofitable but more so, impractical,” adds Ilacad.

To arrest the slide, the movie industry has tirelessly lobbied for the passage of a bill that will save the industry and the roughly 300,000 people that it employs.

The industry’s efforts did not go unrewarded. Last Jan. 26, House Bill 5624 (HB 5624) was passed on third reading by the House of Representatives.  HB 5624 will reduce the amusement tax on local films from 30 percent to not more than 10 percent.

The passage of the bill was made possible through the efforts of several lawmakers headed by Speaker Prospero Nograles, Representatives Irwin Tieng, Rufus Rodriguez, Roilo Golez, Al Francis Bichara, Mikey Arroyo, George Arnaiz, Exequiel Javier and Arthur Defensor Sr.

The Senate version of the bill which was unanimously passed on third reading last June 11, 2008 was authored by senators Bong Revilla, Loren Legarda, Manny Villar, Noynoy Aquino and Chiz Escudero.

With the tax reduction, the industry will be relieved from the burden of paying redundant taxes, which has, for the longest time, been one of the major factors why the number of locally-produced films continues to decline.

With tough competition from foreign films and the high cost of production, not to mention the unending fight versus piracy, the movie industry needs all the help it can get to keep itself afloat. The bill is certainly a welcome help, one that the industry will always be grateful for.