Press Release
March 22, 2009

Villar urges incentives for entertainment industry

Nacionalista Party President Sen. Manny Villar today said the growth of creative media in the country should be encouraged through tax incentives especially in this era of economic upheaval.

"There should be a way to cushion the effects of the financial crisis on the creativity of the Filipino, one of the traits that make us stand out in the world," Villar said.

Villar filed Proposed Senate Resolution 920 urging the Department of Finance and the Department of Trade and Industry's Board of Investments to amend the list of business activities eligible for tax incentives by including television, film, theater and digital arts production.

"Giving tax breaks is also our way to reward the efforts of the men and women of the entertainment industry that gave us international recognition and respect," he added.

The former Senate president noted that Philippine theater produced top-calibre and world class thespians Lea Salonga, Joanna Ampil, among others.

Major animation studios in the United States outsource their work to the Philippines where there is an abundant supply of talented digital artists and animators, he said.

Filipino animators were tapped in various Hollywood animated films as Finding Nemo, Little Mermaid, Lilo and Stitch, The Lion King and many others.

The animation industry in the Philippines started in 1983, and after more than two decades, the industry now employs about 4,500 full-time employees in 40 animation studios in the country, with estimated revenues reaching US$54 million in 2006.

"The Philippines is now known as the global animation haven, but only animation firms inside economic zones qualify for tax perks in the current Investment Priorities Plan," he said.

The former Senate president said the sad state of the movie industry right now can be attributed to onerous taxes, rising cost of production, dwindling local market, competition from foreign films, competition from video and cable, censorship and uncontrolled video and cable piracy.

Villar said, Philippine cinema has the potential to replicate the success of India's Bollywood, which is currently enjoying global attention with its award-winning film "Slumdog Millionaire" with some government support through this initiative of giving tax incentives.

Recently, two of the country's biggest television station,s ABS CBN and GMA placed in major award-giving bodies for locally produced shows, like "Sa Piling Mo" (Best Drama Series, 2006 Philippine Movie Press Club- Star Awards for TV and regional semi-finalist in the International Emmy Awards for Drama Series category), and Marimar (1st Filipino-American Visionary Awards 2008).

The 1976 film "Insiang" directed by Lino Brocka gave rise to his Cannes Film Festival debut and earned him the label as the first internationally-respected Filipino film maker.

"Our achievements in this field are testimonies to the Filipino creativity that is truly world class. It is only right to build an environment where it can thrive through regulation and other forms of assistance," Villar said.

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