Film, music industry gets tax perks

MANILA, Philippines — The local film and music industry in the country may soon get a reprieve from pandemic losses after the House of Representatives passed on third and final reading a bill that would grant them tax exemptions and subsidies.

Voting 195-0-0, lawmakers on Monday approved House Bill No. 10541, or the “Film and Live Events Recovery Act,” which would reduce the 10 percent amusement tax imposed on cinemas to 5 percent of the gross receipts from admission fees.

If passed into law, the bill would exempt locally produced operas, concerts, dramas, musical plays, recitals, painting and art exhibitions, flower show, musical programs, literary and oratorical presentations and local film production from the amusement tax.

The proposed bill would also suspend the power of local governments to impose an amusement tax for two years, which may be extended for another two years, subject to the approval of the Department of Finance.

“As evidenced by the dismal performance of the recent Metro Manila Film Festival 2021, which returned to cinemas, our local film industry is in grave peril,” said Pangasinan Rep. Christopher de Venecia, one of the principal authors of the bill.