Tag: amusement tax

Better than Streaming: Amusement tax will not be imposed on Filipino films in Muntinlupa City for the next 3 years

Better than Streaming: Amusement tax will not be imposed on Filipino films in Muntinlupa City for the next 3 years

carlocarrasco

Welcome back, fellow geeks and movie buffs!

Recently in the City of Muntinlupa, the City Government approved an ordinance establishing a moratorium on the collection of the amusement tax on Filipino films (note: movies produced by Philippine companies/organizations) within the city for the next three years, as reported by the Manila Bulletin. The ordinance was signed into law by Mayor Ruffy Biazon.

In short, local companies here in the Philippines whose films are shown in theaters within the jurisdiction of Muntinlupa City could earn more as the amusement tax won’t be imposed for most of the year for the next three years while the cinema operators themselves can benefit along the way.

I say most of the year because the moratorium does not cover the time period of December 25 to January 7 which is precisely the time when the annual Metro Manila Film Festival (MMFF) happens.

To put things in perspective, read the excerpt from the Manila Bulletin news report posted below. Some parts in boldface…

Muntinlupa Mayor Ruffy Biazon and the City Council approved an ordinance granting a three-year moratorium on the collection of amusement tax from Filipino films in the next three years.

The Muntinlupa City Council passed and Biazon signed Ordinance No. 2024-229 “Declaring Moratorium on the Collection of Amusement Tax for Filipino Films in the City of Muntinlupa from January 08 to December 24 of every year for the next three (3) years.“

Under the existing Local Government Code, “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 ten percent (10%) of the gross receipts from the admissions fees.”

In February, the Metro Manila Council adopted the Metropolitan Manila Development Authority (MMDA) Resolution No. 24-11 “Declaring a Moratorium on the Collection of Amusement Tax for Filipino Films in Metro Manila from January 08 to December 24 of Every Year for the Next Three Years.”

In the Muntinlupa ordinance, it was stated that the MMDA resolution “was adopted to recognize the importance of the local film industry in promoting cultural and economic development and in response to the appeal of the local filmmakers to boost the film industry after the impact of the COVID-i9 Pandemic on the production and exhibition of Filipino Films, and the dominance of foreign films.”

Under the ordinance, all cinemas in Muntinlupa can avail of the moratorium on the collection of amusement taxes for Filipino films from Jan. 8 to Dec. 24 of every year for the next three years.

When it comes to the state of cinemas within Muntinlupa City, Commercenter has four screens and I noticed over the past two months that only 2 or 3 were operating during my visits there. Over at Festival Mall, their 4-screen modern cinemas are fully operating but their original cinemas (located several feet away by foot on the same floor) are still dark and depressing as only 2 or 3 screens (out of ten screens) were operating almost all the time.

As for the cinemas in Alabang Town Center, they seem to be operating normally and continue to attract a steady amount of moviegoers.

Going back to the approved moratorium, it remains to be seen if it could lead to a potential reduction of ticket prices in relation to Filipino movies within Muntinlupa. Even if ticket prices get reduced, would it be enough to convince people to come to the Muntinlupa cinemas and buy tickets for the cinematic experience. There is also the factor of the quality of Filipino movies showing in Muntinlupa movie theaters plus the factor of foreign movies.

As a resident of Alabang who saw lots of movies in the local cinemas, I noticed that Muntinlupa City is lacking when it comes to hosting film festivals (note: the annual MMFF does NOT count). Special events about movies focusing on variety, quality and artistry being held in Muntinlupa can help cinema operators attract moviegoers as well as the enthusiastic film buffs.

Perhaps the City Government or barangays could someday organize a special event of short films made by Muntinlupa-based filmmakers and have such films screened in local cinemas. Organizing another film festival showcasing films by independent filmmakers from around the country and having them screened in theaters within the city could help too.

Still on the topic of Filipino movies, when will the time come when the major local movie producers will have premieres of their new movies held in cinemas here in Muntinlupa and give locals the chance to see their favorite movie stars in person?

Let me end this post by asking you readers: What do you think about the 3-year moratorium approved by the City Government of Muntinlupa? Do you think that cinemas in Muntinlupa are losing money? Do you think the newly approved moratorium could be disadvantageous to the City Government in terms of revenue?

If you wish to join a group of movie enthusiasts and talk about cinema, visit the Movie Fans Worldwide Facebook group at https://www.facebook.com/groups/322857711779576

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram at https://www.instagram.com/authorcarlocarrasco

BIR says half a trillion Pesos lost to tax evasion each year

BIR says half a trillion Pesos lost to tax evasion each year

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Tax evasion remains a very serious problem in the Philippines. As far as the Bureau of Internal Revenue (BIR) is concerned, the authorities lose around half a trillion Pesos each year due to tax evasion, according to a BusinessWorld news report.

To put things in perspective, posted below is the excerpt from the BusinessWorld news article. Some parts in boldface…

THE GOVERNMENT loses around P500 billion annually to tax evasion, according to a top Bureau of Internal Revenue (BIR) official.

“There is a lot, especially if we include those involved in illicit trade. In cigarettes alone, there’s around P100 billion,” BIR Commissioner Romeo D. Lumagui, Jr. said, when asked about revenue losses from tax evasion.

“Leakages aren’t part of that yet, like petroleum or vape products that aren’t registered, as well as fake receipts. I think it won’t go below P500 billion if you add everything up,” he added.

Mr. Lumagui said the BIR will have an easier time achieving its collection targets if it addresses tax evasion.

Earlier this month, the BIR filed 74 tax evasion complaints worth P3.5 billion against several companies.

“We will tailor efforts to improve digital services so businesses will leave the shadow economy and join the tax net. We will now focus on enforcement activities against tax evaders, put emphasis on tapping uncollected taxes through illegal activities,” Mr. Lumagui said.

The BIR is currently monitoring and investigating a number of suspected tax evaders.

“The most important right now is the selling of fake receipts and we know who (they are). We are investigating so we can file a case against those involved,” Mr. Lumagui said.

The BIR is targeting to collect P2.6 trillion in revenues this year.

“With all our activities and efforts we are making, we will be able to achieve the tax collection target,” he said.

In 2022, the agency collected a total of P2.34 trillion, surpassing its P2.1-trillion target.

Meanwhile, Mr. Lumagui said the agency will also review its policies after the Supreme Court declared void its regulations that require firms to disclose the personal information of investors.

“We must respect the privacy (of these investors) but when it comes to the correct amount of taxes, the BIR has auditing power. There is still a need to pay taxes and the compliance of these businesses needs to be monitored. When it comes to determining the correct amount of taxes, we can investigate that,” he added.

The Supreme Court declared that the BIR Revenue Regulations No. 1-2014 and Revenue Memorandum Circular (RMC) No. 5-2014 “void for being unconstitutional” as it violated the right to privacy.

The regulations require businesses to disclose investor information such as addresses, tax identification number (TIN), and birthdays, among others.

Let me end this piece by asking you readers: What is your reaction to this recent development? Do you think the BIR will be able to collect P2.6 trillion this year even with tax evasion still going on? What do you think should be done to eradicate tax evasion all over the Philippines?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Better than Streaming: Let’s help the local cinema industry recover from its massive loss

Better than Streaming: Let’s help the local cinema industry recover from its massive loss

carlocarrasco

It’s been two days since cinemas around Metro Manila officially reopened which is a welcome move not because I personally want to watch movies on the big screen inside the theater but because the local cinema industry will contribute to the economic recovery of our nation from this ongoing COVID-19 crisis. That being said, I urge you readers – who got fully vaccinated locally – who love watching movies to take time out to support the local cinema operators and their employees by visiting their venues, buying tickets over the counter and watch movies on the big screen while following the local health protocols (note: local cinemas have invested a lot in making their venues safe and sanitized).

Be reminded that streaming will NEVER match the grandeur and immersion of the cinema! The cinema is always better than streaming. Movie venue choices aside, local moviegoers now have the opportunities to watch A Quiet Place Part II  and the big blockbuster Dune (2021).

Going back to the topic of economic recovery, there is no doubt that the COVID-19 crisis combined with all the restrictions imposed by the local, regional and nation authorities brought down the national economy in 2020 along with all the economic sectors and the employees. All of these also translate into a major loss of tax revenue for the local governments, provincial governments and the national government.

In the case of the local cinema industry, the shutdown of cinemas since the pandemic started in March 2020 resulted a huge, collective industry loss of revenue according to a BusinessWorld report. I’m talking about many BILLIONS of Pesos lost!

To put things in perspective, posted below is an excerpt of the BusinessWorld report. Some parts in boldface…

The cinema industry had P19 billion in foregone revenue from March 2020 to September this year, Film Development Council of the Philippines (FDCP) Chairperson Mary Liza Diño-Seguerra said in a Teams video interview.

The loss had ballooned to P21 billion as of Oct. 11, Charmaine N. Bauzon, president of Cinema Exhibitors Association of the Philippines, told PTV News.

Local government units, which charge 10% amusement tax per movie ticket, lost P1.09 million daily from the country’s more than a thousand movie screens, according to estimates by the National Tax Research Center.

“We earned P11.5 billion yearly from the box office [before the pandemic],” Ms. Seguerra said. “We sold about 52 million tickets each year.”

Cinema operators get 50% of ticket sales, while the other half goes to producers, who then give as much as a quarter to the distributor, who’s in charge of marketing and distributing the film to the public.

Last year, cinemas in areas under a more relaxed quarantine made a measly P327,000, Ms. Seguerra said.

Take note that before the pandemic started, the local cinema industry as a whole had a work force of 300,000 employees and those who lost their jobs and income really suffered. In the City of San Juan, the Manila Bulletin reported about the reopening of local cinemas there with Mayor Francis Zamora issuing statements and leading the inspection on the venues. Posted below is an excerpt from the Manila Bulletin article.

San Juan City Mayor Francis Zamora led the inspection of cinemas in the city starting with the Greenhills Promenade Cinema.

Zamora inspected the health and safety protocols of the cinema such as the disinfection process of the establishment and the procedure of buying the tickets, which can be done before entry to the cinema or online, new seating arrangements with strict physical distancing, and the guidelines of actual movie viewing under the new normal.

“I know how Filipinos miss watching movies in silver screens which have been shut down for almost two years due to the pandemic, but now the long wait is over. With the approval of the IATF, we are allowing the opening of our cinemas in the city, provided that we take extra care and observe stringent protocols as we are still facing threats of COVID-19 despite the easing of restrictions to Alert Level 2,” Zamora said.

“I want to personally make sure that our cinemas in San Juan will be safe for all of us, not only for the moviegoers but for the employees of these establishments as well,” he added.

During Alert Level 2, the operational capacity of several businesses has been increased to accommodate more customers. It has also eased down quarantine restrictions in various indoor establishments and recreational venues including movie houses and cinemas.

Under the Inter Agency Task Force (IATF) guidelines, cinemas can accommodate up to 50 percent of its maximum venue capacity, but only those who are fully vaccinated will be allowed entry into the cinemas.

For added insight, posted below are two news videos for your viewing…

Going back to choices of movies, be aware that opening soon locally in cinemas are Black Widow (November 17) and Shang-Chi and the Legend of the Ten Rings (November 24). For those who prefer Philippine movies, the Metro Manila Film Festival (MMFF) will return to cinemas next month!

Once I again, I urge you readers based in Metro Manila and in nearby provinces who got fully vaccinated to come out to support our local cinema operators and make a contribution to economic recovery as you enjoy watching on the big screen again.

Let me end this piece by asking you readers: Now that cinemas within Metro Manila have reopened, are you planning to revisit them and watch movies on the big screens anytime soon? Does Dune (2021) interest you a lot? When was the last time you saw a movie inside the movie theater? Do you realize that as a paying customer, what you pay helps not only movie producers and cinema operators but also their employees and the varied government units (that collect amusement taxes)?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below and also please consider sharing this article to others. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me as well. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me at HavenorFantasy@twitter.com

For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagements, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673

If you wish to join a group of movie enthusiasts and talk about cinema, visit the Movie Fans Worldwide Facebook group at https://www.facebook.com/groups/322857711779576