THREE-YEAR
HOLIDAY ON AMUSEMENT TAXES
FOR LOCAL FILMS
Quezon
City Mayor Feliciano R. Belmonte Jr.
on Monday approved a city council
ordinance scrapping the amusement
taxes on local films in the city.
Film industry leaders expressed hope
that other key cities in Metro Manila
and in the provinces will follow suit.
The law took effect
on Monday. October 26. The virtual
tax holiday will be effective for
three years and can be extended.
In the presence of city
officials, led by Vice-Mayor Herbert
Bautista, and film industry leaders,
Mayor Belmonte signed Ordinance No.
SP 1718.
The ordinance, in effect,
reduced amusement taxes from 15 percent
to zero percent on films produced
locally. It was filed before the city
council by majority floorleader Ariel
Inton Jr. Foreign films, however,
will still be levied with the 15%
amusement tax.
Belmonte echoed the
hopes expressed by film industry leaders:
“With this pioneering piece
of legislation, it is hoped that similar
ordinances, or those that tend to
support and give incentives to a ‘dying’
cultural medium, will be enacted in
other local government units as well.”
It was also a Quezon
City council which first implemented
the reduction of amusement taxes from
30 percent to 15 percent five years
ago.
Councilor Inton said
that the councilors crossed party
lines to facilitate the bill’s
early passage. He justified that “there’s
a need to extend some incentives to
the local film industry to encourage
more local film productions, and breathe
life to a financially-challenged industry.”
The imposition of tax
for amusement places and amusement
activities is provided for under Section
39 of the QC Revenue Code, which states
that there shall be collected from
the proprietors, lessees, operators
and amusement places, a tax with the
corresponding rate of percentage of
the gross receipts from admission
fees.
Film Academy of the
Philippines officials, led by Director
General Leo M. Martinez and Chairman
Espiridion Laxa had earlier urged
Mayor Belmonte to study the possibility
of further reducing the amusement
taxes.
Excessive taxation and
film piracy are the two major factors
the FAP officials cited as the reason
behind the sharp decline in film productions
which dropped from a record 200 films
a year in the 1970s and 1980s to an
average of 82 films from 2000 to 2003,
and a miserable 56-film output in
2004.
Among those who witnessed
the signing of the bill by Mayor Belmonte
were Director General Martinez and
Chairman Laxa, as well as producers
Orly Ilacad of OctoArts Films, Wilson
Tieng of Solar Films, Ms. Angie Pineda
of Star Cinema, Domic Du of the anti-piracy
council; Manny Nuqui of Four-N-Films,
Leo Hernandez of Robinson’s
Cinemas and Atty. Rolando Dueñas
of the association of theater owners.
The complete ordinance
that was signed and duly approved
by Mayor Belmonte at the council’s
session hall last Monday is hereby
reprinted:
Republic
of the Philippines
QUEZON CITY COUNCIL
Quezon City
16TH City Council
72nd
Regular Session
ORDINANCE
NO. SP-1718 S-2006
(PO2006-158)
AN
ORDINANCE AMENDING SECTION 39 OF ORDINANCE
NO. SP-91, S-1993 (THE ‘’QUEZON
CITY REVENUE CODE’’)
AS AMENDED)
_______________________________________________
Introduced
by Councilors ANTONIO E. INTON, JR,
AIKO MELENDEZ-JICKAIN, RESTITUTO
B. MALAñGEN, BERNADETTE HERRERA-DY,
ELIZABETH A. DELARMENTE, VICTOR V.
FERRER, JR., FRANCISCO A. CALALAY,
JR.,
ROMMEL R. ABESAMIS, JOSEPH P. JUICO,
WINSTON “Winnie” T. CASTELO,
RAMON P.
MEDALLA, VOLTAIRE GODOFREDO L. LIBAN
III,
ERIC Z. MEDINA, ALLAN BUTCH T. FRANCISCO,
JORGE B. BANAL, JR., FRANZ S. PUMAREN,
WENCEFROM BENEDICT C. LAGUMBAY,
DANTE M. DE GUZMAN, JULIAN M.L. COSETENG,
DIORELLA MARIA SOOTTO-DE LEON, EDCEL
B. LAGMAN, JR., ALMA F. MONTILLA,
JANET M.
MALAYA, BAYANI V. HIPOL, XYRUS L.
LANOT
and JUNIE MARIE L. CASTELO.
______________________________________________
WHEREAS,
the Philippine film and movie industry
has
experienced a substantial decrease
in the number of locally
produced motion pictures from over
200 films in the 1970’s
to the 1980’s to an average
of only 82 films from 2000 to
2003, and eventually to only 56 films
in 2004;
WHEREAS,
such a decline in the number of motion
picture productions may be directly
attributed to onerous
taxation by both the national and
local government, and
film and other intellectual property
piracy, thereby limiting
Its potential profitability;
WHEREAS, there is a need to extend
some incentives
to the local film industry un order
to encourage more local
film productions and breathe life
to a financially challenged
industry.
NOW,
THEREFORE
BE IT
ORDAINED BY THE CITY COUNCIL OF QUEZON
CITY IN REGULAR SESSION ASSEMBLED:
SECTION
1. AMENDMENT. Section 39 a) (i) of
Ordinance No. SP-91, S-1993 (the “Quezon
City Revenue
Code”) as amended, is hereby
further amended to read:
“Section
39. Imposing Tax for Amusement
Places and Amusement Activities.
a)
Amusement Places – There shall
be
collected from the proprietors, lessees,
operators of
amusement places, a tax with the corresponding
rate or percentage of the gross receipts
from
admission fees:
Amusement
Place
Rate
i. Movie Theaters or Cinema 30%
from the showing of foreign films
0%
from the showing of local films”
SECTION
2. This tax holiday herein granted
shall be
for a period of three (3) years upon
approval by the City
Mayor without prejudice to extension.
SECTION
3. REPEALING CLAUSE. All ordinances,
rules and regulations or parts thereof,
which are in conflict
with the provisions in this Ordinance
are hereby deemed
repealed or modified accordingly.
SECTION
4. EFFECTIVITY. This ordinance shall
take
Effect upon its approval.
ENACTED: October 16, 2006.
HERBERT
M. BAUTISTA
Vice-Mayor
Presiding Officer
ATTESTED:
JOHN
THOMAS S. ALFEROS III
Legislative Staff Officer VI
APPROVED:
October 23, 2006
FELICIANO R. BELMONTE, JR.
City Mayor
CERTIFICATION
This
is to certify that this Ordinance
which was
APPROVED on Second Reading under Suspended
Rules on
October 16, 2006, was finally PASSED
on Third/Final
Reading by the City Council on the
same date.
JOHN THOMAS S. ALFEROS III
Legislative Staff Officer VI
