Metro Manila (CNN Philippines) — Out of the Metro Manila Film Festival’s (MMFF) more than P1 billion total gross income nationwide, only about P23 to P24 million in amusement tax will go to the film festival’s beneficiaries, which is comprised of groups forming the local film industry.
Theatre owners pay amusement taxes, usually equivalent to 10 percent, to local government units.
In the case of the MMFF, amusement taxes are given to MMFF beneficiaries, which include the Mowelfund, the Film Academy of the Philippines (FAP), the Motion Picture Anti-Piracy Council (MPAPC), the Film Development Council of the Philippines (FDCP), and the Optical Media Board (OMB).
In the 14 days of showing of MMFF movies, it had a total gross income of P1.02 billion.
A small fraction
During the continuation of the House Committee on Metro Manila Development’s probe on the MMFF controversy, lawmakers expressed disappointment after hearing that despite the billion-peso success of the MMFF, only a small fraction goes to the MMFF’s beneficiaries or the local film industry.
Buhay Party-list Rep. Lito Atienza said that this defeats the festival’s purpose to help the local film industry.
Also read: John Lloyd Cruz calls for reforms in the MMFF
Moreover, Atienza said that big businesses are being favored, while the technical people who worked hard to help create the movies are not getting what they deserve.
MMDA Chairman Emerson Carlos explained that only a small fraction of the festival’s total gross profit goes to the MMFF’s beneficiaries because 50 percent of the profits come from the provinces.
Movie theatres outside Metro Manila waive the amusement tax which pulls down the taxable profit to P500 million.
Consequently, the amount of the amusement tax collected differs per city, ranging from five to 10 percent.
The problem is, Quezon City, which houses about 35 percent of the theatres in Metro Manila, do not charge any amusement tax.
Carlos said that this is why the MMFF’s beneficiaries will only be getting P23 to P24 million out of the total gross that MMFF movies earned late last year until this year.
Cash gifts to officials
Lawmakers, however, expressed further disappointment after they found out that MMFF beneficiaries do not get the funds on time.
FAP President Leo Martinez said funds are given to them in tranches.
He added that MMFF beneficiaries get an even smaller amount because some expenses the MMFF incurred were still being deducted from the amusement tax collected.
Among these are the personal expenses that members of the Executive Committee incurred during the festival and the dinner prepared for the launch of the succeeding film festival, among others.
In 2009, the Commission on Audit (COA) discovered that the MMFF gave P1.6 million as cash gift to former MMDA Chairman Bayani Fernando.
MMDA Finance Head Edenison Fainsan, however, said Fernando returned the money to the MMDA after the COA ordered him to do so.
Fainsan admited that other officials received cash gifts from the MMFF but the amounts were smaller.
When asked to identify who received these cash gifts, Fainsan said he couldn’t remember the recipients anymore.
