Press Release
June 9, 2008

LOREN BILL REDUCING TAXES ON MOVIE INDUSTRY UP IN SENATE FOR APPROVAL

Sen. Loren Legarda has pushed for the approval of her bill reducing the taxes imposed on the movie industry in order to stimulate the motion picture industry, promote Filipino culture and achieve national unity.

Loren made the appeal to the Senate in plenary session while co-sponsoring Senate Committee Report No. 56 recommending the approval of Senate Bill No. 2325, entitled "An Act Amending Section 140 (A) of Republic Act No.7160, Otherwise Known as the Local Government Code of 1991."

The bill, authored by Loren, reduces the amusement tax imposed by local governments from the current level of not less than thirty percent to ten percent

Said Loren, "In 2006, P1.437 billion in total receipts was generated by locally produced movies. In addition, the local film industry directly employs some 260,000 Filipinos, and contributes much to domestic economic activity. But due to excessive taxation, the local film industry's growth and competitiveness are greatly challenged."

Under present laws, Loren observed, the local film industry is subject to the following taxes: 30% amusement tax on gross receipts from admission to be collected from the proprietors, lessees, or operators of theaters and cinemas; 5% withholding tax on producer's film share; 35% corporate income tax; and 12% value-added tax on the producer's film share.

She explained that Senate Bill No. 2325 is envisioned to stimulate the local film industry by providing the much-needed tax relief on movie producers, theater operators and movie patrons.

Local films not only provide entertainment, but serve to promote culture and help Filipinos achieve national identity and showcase their art to rest of the world.

"It is high time that the State recognizes the film industry as partners in promoting Filipino culture and fostering unity among Filipinos. On this note, I encourage the members of this Chamber to support the immediate enactment of this measure, " Loren told the Senate.

Loren mentioned that reduction on taxes imposed on the movie industry was the first bill she filed in the Senate during the 14th Congress.

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