INTERIOR Secretary Benjamin Abalos Jr. yesterday vowed to ask local government units (LGUs) to suspend the collection of amusement tax for Filipino movies in the next three years to help the movie industry recover from the effects of the COVID-19 pandemic.
Abalos made the statement after a meeting with movie producers, who sought his assistance to address some of the problems the movie industry is facing, at the PNP headquarters in Camp Crame.
“The main (problem) is the amusement tax,” said Abalos, adding the other problems discussed in the meeting include piracy of Filipino movies and the burdensome issuance of shooting permits at the LGU level.
Abalos said cities and municipalities are allowed to collect a 10 percent amusement tax under the Local Government Code of 1991.
“They (filmmakers) are requesting us to waive (the amusement tax) for the next three years,” said Abalos, adding suspending the collection of amusement tax for Filipino movies may not severely affect the LGUs.
He noted that of at least 10 movies shown in cinemas at any given time, only three are Filipino movies.
“There is autonomy given by law. This is their right,” said Abalos, referring to the LGUs’ collection of amusement tax. “The most that we can do is ask them to waive it,” he added.
Abalos said his father, Mandaluyong City Mayor Benjamin Abalos Sr. is amenable to waiving the collection of amusement tax for Filipino movies in the city.
He said he is going to meet with other local chief executives to ask them to also waive the collection of amusement tax in their respective areas.
“I commit I will talk personally with all the mayors,” he said.
“I heard their (filmmakers’) argument, it’s very valid. I saw the numbers, it’s very valid,” Abalos said, adding he is going to present these to local chief executives during their meeting.
The Philippine Motion Pictures Producers Association (PMPPA) requested a three-year break on the payment of amusement tax to the House of Representatives as early as last year, noting that taxes take up a huge chunk of their expenses.
PMPPA member Joji Alonso said filmmakers are paying at least three forms of taxes — amusement tax, value-added tax, and income tax for artists and crew members.
