The Senate last Wednesday, June 4, passed a bill lowering the amusement tax from 30% to not more than 10% of cinemahouses’ admission tickets.
A similar bill must now pass in the Lower House for the slashed amusement tax to take effect.
Senate Bill 2325 is entitled An Act Amending Section 140 (A) of Republic Act. No. 7160, Otherwise Known as “The Local Government Code of 1991”. The bill was prepared jointly by the committees on local government and on ways and means with Senators Loren Legarda, Ramon ‘Bong’ Revilla Jr., Benigno Aquino III and Francis ‘Chiz’ Escudero.
The Senate Bill reads in full:
Section 1. Section 140 of Republic Act No. 7160, otherwise known as “The Local Government Code of 1991” is hereby amended to read as follows:
Section 140. Amusement Tax.
(a) The province may levy an amusement tax to be collected from the proprietors, lessees or operators of theaters, cinemas, concert halls, circuses, boxing stadia and other places of amusement at a rate of not more than [thirty percent (30%)] TEN PERCENT (10%) of the gross receipts from admission fees.
(b) In case of theaters or cinemas, the tax shall first be deducted and withheld by their proprietors, lessees or operators and paid to the provincial treasurer before the gross receipts are divided between said proprietors, lessees or operators and the distributors of the cinematographic films.
(c) The holding of operas, concerts, dramas, recitals, painting and art exhibitions, flower shows, musical programs, literary and oratorical presentations, except pop, rock or similar concerts shall be exempt from the payment of the tax herein imposed.
(d) The Sangguniang Panlalawigan may prescribe the time, manner, terms and conditions for the payment of tax. In case of fraud or failure to pay the tax, the Sangguniang Panlalawigan may impose such surcharges, interests and penalties as it may deem approriate.
(e) The proceeds from the amusement tax shall be shared by the province and the municipality where such amusement places are located.
Section 2. Repealing Clause- All laws, executive orders, presidential decrees, ordinances, rules and regulations or parts thereof which are inconsistent with any of the provisions of this Act are hereby repealed or modified accordingly.
Section 3. Effectivity Clause- This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) national newspapers of general circulation.
The approved senate bill was in substitution of bills nos. 71, 717 and 1426.
Senate Bill 71 was introduced by Sen. Legarda and is entitled “An act exempting the Philippine film and movie industry from the payment of certain taxes, amending for the purpose certain provisions of the Local Government Code of 1991, the Natioal Internal Revenue Code of the Philippiines, and for other purposes.
Senate Bill 717 was introduced by Sen. Revilla and is entitled “ An Act amending Section 140 of Republic Act 7160, otherwise known as the “Local Government Code of 1991” and for other purposes.
Senate Bill 1426 was inroduced by Senator Manuel Villar and is entitled “An act reducing the rate of amusement tax on admission fees of theaters and cinemas, amending for the purpose paragraph (A) Section 140 of Republic Act No. 7160, otherwise known as The Local Government Code of 1991, and of other related laws.
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