A BILL seeking to exempt the movie theater industry from income tax, excise tax, value-added tax and amusement tax in exchange for a 5% share of the gross income generated has been refiled at the Senate.
Senate Bill 28, introduced by Senator Ramon B. Revilla, Jr., was touted as a measure designed to revive the industry by providing tax breaks to proprietors, lessees, and operators of theaters and cinemas. If passed, they will only be liable to pay real property tax.
The bill proposes that of the 5%, 3% will go to the National Government, and 2% to the local government hosting the theater.
Mr. Revilla said the industry was severely affected by the coronavirus disease 2019 (COVID-19) pandemic. As restrictions were placed on moviegoers, it became increasingly difficult to produce and market Filipino movies, affecting film producers, movie theater operators, and patrons.
“We have nursed many businesses and establishments back to life in the last few years. And as we do so, we should not forget the movie industry and the thousands in its employ who have been so badly hit by the pandemic,” he said in a statement on Wednesday.
In spite of the recent reopening of cinemas, moviegoers are still reluctant to watch films in cinemas because of the perceived safety risk of sitting in an indoor venue alongside crowds. Movie ticket sales have also been under pressure from streaming services.
“For this industry and its art to keep living and thriving, we must offer swift assistance,” he said. — Alyssa Nicole O. Tan