Press Release
August 23, 2007

REVILLA TO LGUs: Waive Your Amusement Tax

Senator Ramon "Bong" Revilla Jr. today appealed anew to Local Government Units (LGUs) nationwide to back his long-time advocacy of reducing the amusement tax slapped to film producers. " Reducing the amusement tax is what I've been long proposing, However, It would be better if all LGUs volunteer to waive their amusement tax for the sake of the film industry," said Revilla, chairman of the Senate Committee on Public Information and Mass Media.

At the same time, the senator lauded Makati Mayor Jejomar Binay for his plan to exempt from amusement tax all Filipino-made films shown in theaters with-in his jurisdiction in order to revive the already gasping local movie industry.

"I commend Mayor Binay for making such commitment. We need this kind of cooperation from the LGUs. My bill will be approved more swiftly if there's no resistance from local government units," he pointed out.

Revilla is referring to Amusement Tax Bill, one of the major bills he filed during the previous Congress. He refiled it this 14th Congress as Senate Bill (SB) 717 which aims to lower the amusement tax to 10 percent from the present 30 percent.

Under SB 717, section 140 of Republic Act (RA) 7160, otherwise known as the "Local Government Code of 1991" will be amended. A similar bill was just filed by Senate President Manuel Villar. Revilla earlier expressed confidence that the local film industry will finally get a break with the Senate leadership endorsing a reduction in the amusement tax.

He stressed that the movie industry is debilitated by the collection of two taxes on ticket sales- the one imposed by the national government and the other by LGUs. The lawmaker further explained that LGUs collect amusement tax on admission to theaters to the rate of 30 percent of its gross receipts. Also under RA 9337 or the E-VAT law, the Bureau of International Revenue (BIR) collects further 10 percent on the same gross receipts.

"There must be a commensurate lowering of its tax burden in order to improve the state of the local film industry. My bill proposes to put a ceiling of ten percent on the amusement tax. This may be the last chance and maybe the only hope of a dying industry," Revilla reasoned out.

On Binay providing tax relief on local films, Revilla said this would encourage other mayors to make similar endorsement.

He also noted that prior to this, Quezon City Mayor Feliciano Belmonte Jr. already signed last year an ordinance that exempts from amusement taxes all locally produced films shown at city-based theaters.

"It would be great if more mayors will follow the move. We must finally pass the bill as soon as possible because of the dire status of the local film industry," Revilla added.

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