Feb 25
MAKATI GIVES FAP 2009 CULTURAL TAX SHARE by fapweb  |  Posted in Articles  |  on Fri, Feb 25, 2011

The Makati City Treasurer’s Office turned over to the Film Academy of the Philippines last Thursday, February 24, the academy’s share from the cultural tax collected on cinema admission tickets for the year 2009 amounting to P192,212.40.

This is the first turnover to FAP of its cultural tax share under new Mayor Jejomar Erwin S. Binay Jr.

On March 23, 2009, his father, Vice President Jejomar Binay, still Makati City mayor, presented to FAP officers headed by Director General Leo G. Martinez a check for P4,242,823.72 as its accumulated 20% annual share from the cultural tax collected on cinema admission tickets for several years.

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

In 2008, 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.

Those who approved the 2009 Makati City 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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