Manila eyes scrapping of amusement tax

Manila City Mayor Lito Atienza said the yesterday he has proposed the scrapping of the amusement tax on all local films being shown in Manila theaters in an effort to help resuscitate the dying entertainment industry.

Atienza said he has met with several city councilors and asked for their support on the ordinance.

"We are rushing to pass this law. This is my administration’s commitment that the removal of the entertainment tax would be implemented to replace the Manila Film Festival (MFF)," he said.

He is pushing for the passage of the local law before the Araw ng Maynila. This project is in line with the city campaign slogan "Buhayin ang Pelikulang Pilipino."

The annual MFF is one of the major activities during the June 24 celebration of Araw ng Maynila. This tradition began in 1966.

The mayor believes that scrapping taxes would help both the movie industry and moviegoers because unlike the MFF that runs only for a week or so, people would benefit from no taxes the entire year. It would also help reduce the country’s unemployment status.

Atienza said he has been saddened by the plight of the local movie industry. In the past, some 300 films are produced, but lately the industry averages only 50 films a year.

Some producers said high taxes have forced them to come out with bold films because they require low budgets.

Once the city government succeeds in eliminating the said tax, it could also demand theaters in Manila to reduce the prices of tickets for local films.

He added that on the part of the city government, they are also willing to make sacrifices because doing away with the tax would have adverse effects on their collections. Local governments get a share from the amusement tax.

"We already made computations and it would not affect the city revenue that much. We have to make sacrifices for the greater good," the mayor said.