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Cinema Tax Reduced To 10% In Philippines

by Mary Swire, Tax-News.com, Hong Kong

02 February 2009

In a bid to stimulate the country's flagging movie industry, the Filipino House of Representatives has approved a bill which will drastically reduce the amusement tax levied on cinemas by 20%.

Under the bill, the 30% levy on cinema tickets will be reduced to just 10%; a move which Buhay Party-List Rep. Irwin Tieng believes will encourage film makers to produce higher volumes of quality movies, which more people can afford to watch.

Mr Tieng has blamed this 30% levy for the significant drop in the number of movies produced over the past few years. The number of films produced in the 1990s averaged around 200 per year, whilst only 30 have been made in the past 12 months.

Although this tax reduction will aid the flagging movie industry, Tieng has pointed out that film producers are still faced with the additional burdens of a 12% VAT levy on raw material imports, a 35% rate of corporate income tax and a further 5% withholding tax levy.

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