Amusement Tax in Movies

The movie industry plays a very important role in every Filipino’s life. It has drawn out smiles and, equally often, tears to generations and generations of cinema patrons. It has and will continue to define the Filipino culture and identity as it portrays the Filipino’s taste in the realm of art and their preferences in human conditions – as seen in the dynamic characters and the interesting movie plots on love, life, revolution, fantasy, and anything else under the sun. While it is a clear fact that the industry in Filipino cinema has weathered countless storms since its birth in the 1960s, several factors continue to pose challenges to the industry.

It was earlier feared that the local industry will soon face extinction due to the increasing value of the amusement tax, restricting and limiting the production of quality movies due to high investment costs. As stressed by a certain member of the senate, years ago, there were at least 150 movies produced per year; while today, there could only be about 34 to 45. This is considered by many as an alarming decline. The enacted law requiring 30 percent amusement tax for every motion picture production sparked protest among the National Cinema Association of the Philippines, the Filipino Film Producers and Distributors, and a few government officials. They attributed the significant decline in movie productions to the high financial demand of the present day. Due to combined efforts by the concerned parties, the 30 percent amusement tax is now reduced to 10 percent in support of the local movie industry, the reputable artists behind it, and above all, the wide and ever growing Filipino viewer sector.