With the amusement tax holiday set to end on October 22, 2009, the local film industry is seeking an extension of the zero amusement tax from the showing of local films in Quezon City.
The tax holiday was contained in Ordinance 1718 which was enacted by the City Council on October 16, 2006 and finally approved by Mayor Feliciano R. Belmonte Jr. on October 23, 2006.
Section 2 of the ordinance specifies that this tax holiday “shall be for a period of three (3) years upon approval by the City Mayor without prejudice to extension.”
The ordinance is titled: An Ordinance Amending Section 39 of Ordnance No. SP-91, S-1993 (The ‘Quezon City Revenue Code’), as Amended.
Whereas, the Philippine film and movie industry has experienced a substantial decrease in the number of locally produced motion pictures from over 200 films in the 1970s to the 1980s to an average of only 82 films from 2000 to 2003 and eventually to only 56 films in 2004;
Whereas, such a decline in the number of motion picture productions may be directly attributed to onerous taxation by both national and local government, and films and other intellectual property piracy, thereby limiting its potential profitability;
Whereas, there is a need to extend some incentives to the local film industry in order to encourage more local film productions and breathe life to a financially challenged industry.
Be it Ordained by the City Council of Quezon City in Regular Session Assembled:
Section 1. Amendment. Section 39 a) (i) of Ordinance No. SP-91, S-1993 (The ‘Quezon City Revenue Code”) as amended, is hereby further amended to read:
“Section 39. Imposing Tax for Amusement Places and Amusement Activities
a) Amusement Places—There shall be collected from the proprietors, lessees, operators of amusement places, a tax with the corresponding rate or percentage of the gross receipts from admission fees:
Amusement Place Rate
i. Movie Theaters or Cinema 30% from the showing of foreign films
0% from the showing of local films
The city council was then presided by Vice-Mayor Herbert M. Bautista. The following councilors authored the ordinance: Antonio Inton Jr., Aiko Melendez-Jickain, Restituto Malangen, Bernadette Herrera-Dy, Elizabeth Delarmente, Victor Ferrer Jr., Francisco Calalay Jr., Rommel Abesamis, Joseph Juico, Winston Castelo, Ramon Medalla, Voltaire Godofredo Liban III, Eric Medina, Allan Butch Francisco, Jorge Banal Jr., Franz Pumaren, Wencefrom Benedict Lagumbay, Dante de Guzman, Julian Ml. Coseteng, Diorella Maria Sotto-de Leon, Edcel Lagman Jr., Alma Montilla, Janet Malaya, Bayani Hipol, Xyrus Lanot and Junie Marie Castelo.
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