Metro Manila (CNN Philippines, January 17) — Filipino film producers are calling for a three-year break on the payment of amusement taxes or a 5% decrease in the dues they have to pay to help the local film industry recover from the impact of the COVID-19 pandemic.
At the hearing of the House Special Committee on Creative Industry and Performing Arts on Tuesday, Philippine Motion Pictures Producers Association (PMPPA) member Joji Alonso said taxes take up a huge chunk of filmmaking expenses.
Alonso said filmmakers are paying at least three taxes: the amusement tax, the value added tax, and the income tax for the artists and crew members involved in the film production.
Because of taxes and other expenses, Alonso argued that Philippine-made movies must have gross sales amounting to 270% of their total production cost for producers to recoup their investment or break even.
Should producers make a profit, she said production companies still have to pay an income tax ranging from 20% to 25%, while single proprietors can be taxed up to 35%.
Alonso noted that most of the movies produced in the Philippines in 2022 did not even reach ₱10 million in gross ticket sales.
“Like we requested, if it is possible to have a tax holiday. If that is not possible, perhaps the amusement tax can be reduced further from 10% to 5%. That’s one. That will be a huge help to film producers, the film industry as a whole, even to the theater owners,” Alonso told lawmakers.
Alonso also said the Film Development Council of the Philippines has already reached out to Metro Manila mayors about the possibility of implementing a three-year tax holiday.
The Local Government Code of 1991 allows local government units to collect amusement taxes for film screenings.
At present, Alonso said only Quezon City and Las Piñas have stopped the collection of amusement tax, while Pasay City has lowered the amusement tax from 10% to 5%.
