Bid to cut ‘cinema tax’ welcomed

A proposed ordinance to reduce the amusement tax rates from 30 percent to 15 percent of the gross receipts from admission fees in cinemas and concerts were welcomed by entertainment industry stakeholders.

They, however, wanted it reduced further to 10 percent.

Cecilia Patricio, representative of SM Prime Holdings Inc. who attended the Cebu City Council session to discuss the proposal, said that the proposed ordinance was a welcome move but they wanted it to be reduced to 10 percent to coincide with the ceiling set by the R.A. 9640 or an An Act Amending the Amusement Tax Exemption Act of the Local Government Code (LGC).

The LGC allows the collection of amusement tax not to exceed 30 percent of the gross admission fee of theaters, cinemas, concert halls, circuses, boxing stadia and other places of amusement.

R.A. 9640 sets a ceiling of 10 percent of the gross receipts from the admissions fees as amusement taxes.

Bobit Avila, a local theater owner, was also present in the public hearing and agreed with SM’s stand.

He said that there would be confusion with only 15 percent cut on the tax rate.

The proposed ordinance was sponsored by City Councilor Jose Daluz III. /UPV Tacloban Intern Joy Cherry Quito