Robin Bill Exempts Local Films, Musical Productions from Amusement Taxes
March 31, 2023
Robin Bill Exempts Local Films, Musical Productions from Amusement Taxes
To help the film and music industries recover from the effects of the pandemic, Sen. Robinhood "Robin" C. Padilla filed a bill to exempt Filipino-owned local productions from paying amusement tax, and to grant tax holidays to the two industries.
Padilla, a veteran of the movie industry, noted in his Senate Bill 2048 (The Film and Live Events Recovery Act) that amusement tax laws impede the growth of the entertainment industry and drive up the cost of amusement services.
"Hence, it is imperative to give our film and music industries the necessary boost to thrive and recover from the pandemic and new challenges that cost them major losses while ensuring that the gains redound to local productions, thereby benefiting our people and economy," he said in his bill.
The bill exempts from amusement tax all locally produced creative materials which copyright is owned by Filipinos and from local productions with at least 10% equity owned by Filipinos. It also grants the film and music industries a tax holiday of two years. The bill likewise lowers the cap for amusement tax collection under the Local Government Code to five percent from the current 10 percent.
In his bill, Padilla lamented the taxation on filmmakers and producers is "restrictive and burdensome" to the detriment of our labor productivity, cultural exhibition and local development.
He noted none of the locally produced films in 2022 hit P10 million in gross sales, adding the existing taxes require the films to gross 270% of production costs to just break even.
The bill exempts from paying amusement taxes locally produced film productions, musical plays, operas, concerts, dramas, recitals, painting and art exhibitions, flower shows, musical programs, and literary and oratorical presentations - provided that the copyright of such locally produced work is owned by Filipino/s and that at least 10% of the equity of such local productions is owned by Filipinos as certified by the Department of Trade and Industry or the Securities and Exchange Commission.
Proceeds from the amusement tax shall be allocated for programs, activities and projects in the sectors and industries involving the locally produced work. The remaining proceeds shall be shared equally by the province and municipality where the amusement places are located.
Within two years from the effectivity of the measure, the power of local governments to levy an amusement tax is suspended with an extendible period of at least two years subject to the approval of the Department of Finance.
Lokal na Pelikula at Musical Production, Exempted sa Amusement Tax sa Bill ni Robin
Para tulungan ang industriya ng pelikula at musika na bumangon sa epekto ng pandemya, ihinain ni Sen. Robinhood "Robin" C. Padilla ang panukalang batas para i-exempt sa amusement tax ang local productions na pagmamay-ari ng Pilipino, at bigyan ng tax holiday ang dalawang industriyang ito.
Sa Senate Bill 2048 (The Film and Live Events Recovery Act), ipinunto ni Padilla - isang beterano ng industriyang pelikula - na ang umiiral na batas sa amusement tax ay humahadlang sa paglago ng industriyang aliwan, at nagpapataas ng presyo ng amusement services.
"Hence, it is imperative to give our film and music industries the necessary boost to thrive and recover from the pandemic and new challenges that cost them major losses while ensuring that the gains redound to local productions, thereby benefiting our people and economy," ani Padilla sa kanyang panukalang batas.
Ayon sa panukalang batas, exempted sa amusement tax ang locally produced na creative materials kung saan Pilipino ang may copyright, at ang local productions na hindi bababa sa 10 porsyento na pagmamay-ari ng Pilipino. May tax holiday din na aabot ng dalawang taon ang film at music industries. Bababa naman ang amusement tax collection sa ilalim ng Local Government Code sa limang porsyento mula sa umiiral na 10 porsyento.
Sa kanyang panukalang batas, ikinalungkot ni Padilla na ang kasalukuyang pagbubuwis sa mga gumagawa ng pelikula ay nakakasakal sa "labor productivity, cultural exhibition and local development."
Ipinunto din niya na wala sa mga lokal na sine na ipinalabas noong 2022 ay umabot sa P10 milyon sa gross sales. Dagdag niya na dahil sa kasalukuyang buwis, kailangang kumita ang mga sine ng 270% ng production costs para lang mag-break-even.
Exempted sa amusement taxes sa ilalim ng panukalang batas ang locally produced na film productions, musical plays, operas, concerts, dramas, recitals, painting at art exhibitions, flower shows, musical programs, at literary and oratorical presentations - kung saan ang copyright ay sa pagmamay-ari ng Pilipino; at hindi bababa sa 10% equity ng local productions ay sa pagmamay-ari ng Pilipino, na sertipikado ng Department of Trade and Industry o ng Securities and Exchange Commission.
Ang amusement tax na kokolektahin ay mapupunta sa mga proyekto sa mga sektor na kinabibilangan ng locally produced work. Ang matitira ay hahatiin ng probinsya at munisipalidad kung saan matatagpo ang mga amusement places.
Sa loob ng dalawang taon matapos maging epektibo ang batas, sususpindihin ang kapangyarihan ng lokal na pamahalaan para pumataw ng amusement tax. Maaari itong ma-extend ng dalawang taon, kung papayagan ng Department of Finance.
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