Bringing back the old glory of Philippine cinema: NCR mayors OK 3-year amusement tax suspension for local films
Mayors of Metro Manila has passed a resolution that suspends the collection of amusement tax for the screening of local films in the National Capital Region (NCR) in a move to bring back the glory of the golden age of Philippine cinema.
Metro Manila Development Authority (MMDA) chairman Don Artes, who also chairs the Metro Manila Film Festival (MMFF), said the suspension of the amusement tax will be effective for three years in a move to ease local film producers with additional financial burden.
He said the MMC Resolution will ensure the sustainability of the Filipino film industry.
“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.
The MMC action, according to Artes, was moved by the assessment of the Film Development Council of the Philippines through film director Jose Javier Reyes that the state of the Philippine film industry is dismal and has declined significantly.
Reyes noted that during the pandemic, streaming platforms, content piracy, and heavy taxation on the film industry 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,” said Javier.
He emphasized that the three-year moratorium of amusement tax will mean survival for the industry.
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 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 MMC resolution read.