RP films to be exempted from amusement taxes in Makati

MANILA, Philippines - Philippine-produced movies may soon be exempted from amusement taxes in Makati City, in what Makati mayor Jejomar Binay said is a bid to help the movie industry survive. In an article on the Makati City government website, Binay said he asked the city council to pass an ordinance to amend the city's tax code. "We hope that by exempting Filipino movies from the 30% amusement tax in Makati, we can help the thousands of workers and encourage producers to continue making movies," he said. He also appealed to other local governments to consider exempting Filipino movies from amusement taxes in their localities. Binay described the movie industry as excessively taxed and burdened further by rampant film piracy. The mayor said the decline in the number of film productions and the rise in the number of unemployed movie workers may be directly attributed to excessive taxation. "We cannot expect the Filipino movie industry to survive if government continues to impose excessive taxes," he said. He said the Philippines ranks among other countries that collect the highest amusement taxes, consisting of 30% amusement tax plus 12% VAT and other taxes, totaling 48%. Binay said the Makati City Council has immediately drafted Ordinance No. 2008-042, which amends section 3F.01 Article F. on Amusement Tax of the 2004 Revised Makati Revenue Code. There are 31 moviehouses in Makati. Glorietta has the most number with 11 cinema houses, followed by Greenbelt with seven; Powerplant, six; Waltermart (Cinema 2000), four; and ABC Mall (SM Moviehouses), three. Binay cited figure showing a substantial decrease in the number of locally produced films. From over 200 annually in the 1970s to an average of only 82 from 1998 to 2003, the number has gone down to 56 films in 2004, 53 films in 2005, 50 films in 206, 47 films in 2007, and only 22 films so far in 2008. - GMANews.TV