Local film producers seek moratorium on 10% amusement tax charged by LGUs

Some of the country’s film producers and other members of the local movie industry met with Interior and Local Government Secretary Benhur Abalos to seek help in finding solutions for the industry’s problems.

According to Jun Veneracion’s report on “24 Oras,” among the concerns raised is the 10% amusement tax charged by local governments.

“Kung kunyari may tax holiday na nga na ganito baka pwede pang taasan ‘yung budget ng paggawa ng pelikula para mas mapaganda kasi siyempre, kailangan lumaban rin tayo sa mga produkto ng mga ibang bansa. Dream natin na para tayong Korea di ba? Pero we can't do that without the support of government,” GMA Network Inc. SVP and GMA Films President Atty. Annette Gozon-Valdez said.

“Filipino first, sabi nga nila, unahin natin ang sariling atin,” Film Development Council of the Philippines Chairman and CEO Tirso Cruz III said.

“Kung tayo’y hindi natin mahalin ang ating industriya, baka isa-isang mawala kami at paano naman ang mga manggagawa dito,” Regal Entertainment President Roselle Monteverde said.

A film producer also showed the deductions they get when rolling out movies and showed that even if a film makes P100 million at the box office, they are charged a 10% amusement tax.

The remaining 90% will be shared by the producer and the cinema operator.

From the producer’s 45% share, they will take the 5 to 20% booking fee for the distributors, which also comes with a 12% VAT.

“Effectively, for every 100 million the producer gets, approximately 35-37M net. Hindi po lahat ng pelikula ay umaabot ng 100 million. For the year 2023, karamihan po ng mga pelikula ay nago-gross from the average of 2 million to 12 million only,” Quantum Films Atty. Joji Alonzo said.

In response, Abalos said that he would talk to the mayors in Metro Manila to address the matter.

“I commit, I will talk personally with all of the mayors of Metro Manila. Baka po pwede i-zero na  lang natin tulong na natin for the next three years para makabangon naman sila. So ‘yun po ang hihingin natin sa lahat ng mga local government units,” he said.

The Interior Secretary also said that Mandaluyong City, which is governed by his father, Mayor Benjamin Abalos Sr., supports the requested three-year moratorium on the amusement tax for local movies.

He vowed that they will also put a close watch on the piracy concerns, saying they can depend on the Philippine National Police and other government agencies’ 100% help.

Atty. Gozon-Valdez then added that movie producers were greatly encouraged by the success of the recent Metro Manila Film Festival, which is why they are finding ways to keep the local movie industry alive.

“Ang mga pelikulang Pilipino, it’s part of our arts and culture. We have to preserve it, we have to love it. And gagawin namin ang lahat para hindi mamatay ang industriya ng pelikulang Pilipino,” she said.

— Carby Basina/CACM, GMA Integrated News