Mayors cut amusement tax by half

The mayors of the 17 cities and municipalities of Metro Manila approved yesterday the reduction of the amusement tax levied on movie tickets by 50 percent, in response to the call of President Gloria Macapagal-Arroyo on behalf of the local film-making industry.

Metropolitan Manila Development Authority chairman Benjamin Abalos Sr., noted that the President herself called on the Metro Mayors Council to provide an incentive for the film makers to come up with more quality films for the viewing public.

A resolution was drafted in response to the effect of the economic crisis as well as the recent spate of bombings in Metro Manila on the film industry.

Although a number of measures were adopted in the past as incentives for film makers such as a 100 percent reimbursement of amusement taxes for "quality films," the resolution was deemed necessary as a permanent incentive.

At present, 30 percent of the price of each movie ticket is taken by the local government unit as amusement taxes.

Amusement tax is defined as the "tax levied on the viewers or participants in amusement places. It is a tax paid on admission by customers for the privilege of participating or viewing in amusement places."

With the tax reduction, a significant amount of revenues of the local government would be reduced. However, Abalos noted that the mayors were supportive of the resolution inspite of the revenue loss as long as the general public benefits from the move.

In Taguig, Mayor Ricardo Papa has already implemented a reduction in the municipality’s amusement tax from 30 percent to 10 percent. – Marvin Sy