Mar 25
MAKATI GIVES FAP CULTURAL TAX SHARE by fapweb  |  Posted in Articles  |  on Wed, Mar 25, 2009

Makati City Mayor Jejomar Binay and his council officials turned over to the Film Academy of the Philippines a check for P4,242,823.72 as its accumulated share from the cultural tax collected on cinema admission tickets last Monday, March 23 at Makati City Hall.

The Makati City Council has earlier approved a resolution authorizing the release to the Academy of its 20 percent share in the cultural tax collected on admission tickets pursuant to an MMC ordinance.

The resolution was approved last February 25.

FAP Director General Leo G. Martinez earlier sought help from Mayor Jejomar Binay about this accumulated shares from the cultural taxes and requested the resumption of the remittance of the Academy’s share.

Ms. Leonila Querijero, Vice-Mayor Ernesto Mercado, FAP-DG Leo Martinez, Atty. Espiridion Laxa, PMPDA Pres. William Mayo and PDGP Pres. Manny Morfe.

The FAP officials who went to the Makati City Hall were Director General Martinez, Chairman Espiridion Laxa, Director William Mayo, president of the Philippine Motion Picture Directors’ Association, and FAP finance officer Manny Morfe, president of the Production Designers’ Guild of the Philippines.

Last year, the City of Manila also approved a similar resolution to hand over to the Academy its shares on the cultural tax retroactive to 1992.

The MMC passed an ordinance in 1979 setting up the Cultural Development Fund to be derived from the 25 centavo levy on all admission tickets of movie houses in Metro Manila. Amendatory MMC Ordinance 84-03 allocated the proceeds from the cultural development tax as follows: 30% to the Cultural Center of the Philippines; 20% to the Film Academy of the Philippines; 20% to the Experimental Cinema of the Philippines and 30% to be retained by MMC.

The MMC remitted the funds to the beneficiaries for several years but with the enactment of the Local Government Code in 1992, the MMC declared that government units were to remit the shares directly to the beneficiaries. The last remittance to beneficiaries was in May, 1985.

But it appears that since January 1992, the local government units stopped remitting the cultural tax to the MMC even if the cultural development tax continued to be collected by movie houses.

Excerpts from Makati City Resolution No. 2009-040 are as follows:

WHEREAS, pursuant to Metropolitan Manila Ordinance No. 80-02 as amended, the City government of Makati collects cultural tax on all movie house admission tickets;

WHEREAS, for purposes of protecting the film industry, MMC Ordinance No. 80-02, as amended, provides that the Film Academy of the Philippines receives 20% of the Cultural Tax Collected by the Local Government Unit under the Metropolitan Manila Commission;

WHEREAS, the City Government of Makati, thru its Sangguniang Panglungsod see it fits to release immediately the 20% share of the Film Academy of the Philippines for purposes mandated by the Metropolitan Manila Commission;

NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED BY THE SANGGUNIANG PANLUNGSOD OF MAKATI, METRO MANILA, BY VIRTUE OF THE POWERS VESTED IN IT BY LAW, IN SESSION ASSEMBLED, to authorize the release to the Film Academy of the Philippines of its 20% share in the Cultural Tax collected by the City Government on all admission tickets in movie houses pursuant to Metropolitan Manila Commission (MMC) Ordinance No. 80-02, as amended, subject to all laws and existing legal rules and regulations.

Those who approved the resolution included Vice-Mayor Ernesto Mercado, Councilors Jejomar Erwin Binay Jr., Israel Cruzado, Maria Theresa de Lara, Angelito Gatchalian, Virgilio Hilario, Henry Jacome, Luis Javier Jr., Monique Lagdameo, Arnold Magpantay, Salvador Pangilinan, Tosca Camille Puno, Vincent Sese and Elias Tolentino Jr., SK President Denisse Angelica Hechanova and ABC President Romulo Pena Jr.

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