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Thursday, December 5, 2024

Metro Manila LGUs waive amusement tax on Filipino movies for 3 years

The Metro Manila Council passed a resolution suspending the collection of amusement taxes for the screenings of local films in the National Capital Region for the next three years in support of and to promote the Filipino film industry.

The resolution stated that the imposition of an amusement tax on Filipino films “adds a financial burden to local film producers, potentially affecting the sustainability of the Filipino film industry.”

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Metro Manila Development Authority (MMDA) chief and Metro Manila Film Festival (MMFF) chairperson Don Artes said the MMC resolution will be adapted by each local government unit in NCR to likewise help the movie industry.

The MMC, which is composed of the mayors in Metro Manila, is the governing board and the policy-making body of the MMDA.

“In support of the resolution, they will amend their respective local revenue codes to waive the amusement tax for Filipino movies exhibited in Metro Manila from January 8 to December 24 of every year for the next three years,” Artes said.

During the MMC meeting held Wednesday, the Film Development Council of the Philippines (FDCP) through film director Jose Javier Reyes, said that the state of the Philippine film industry is dismal and has declined significantly.

He noted that during the pandemic, streaming platforms, content piracy, and heavy taxation on film productions were challenges that the industry has been facing in recent years.

“A producer needs to pay three types of taxes for each film including 10 percent amusement taxes together with other taxes such as Value Added Tax and Income Tax, making us the most heavily-taxed movie industry in the world,” he explained, emphasizing that the three-year moratorium of amusement tax will mean survival for the industry.

Local movie industry players voiced this concern to Department of the Interior and Local Government (DILG) Secretary Benjamin Abalos, Jr. during the screening of the inaugural Manila International Film Festival held early last month.

In a roundtable discussion, Abalos presented ease of doing business initiatives in the country to the producers, filmmakers, actresses, and actors, and emphasized support of the DILG in supporting and bringing back the glory of Philippine cinema.

“The DILG is in full support to reinvigorate the Filipino filmmaking industry and help them by bringing back the local moviegoers into watching in cinemas again,” he said.

The moratorium on the imposition of amusement taxes excludes the period of the MMFF, which is from December 25 of every year until January 7 of the following year. Amusement taxes during the said period are waived by LGUs of Metro Manila in favor and in support of MMFF beneficiaries such as the Movie Workers Welfare Foundation (Mowelfund), the Film Academy of the Philippines, the Motion Picture Anti-Film Piracy Council, the Optical Media Board, and the FDCP.

“The move is also to encourage the production and exhibition of quality Filipino films by providing relief and assistance to filmmakers and producers,” the resolution stated.

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