HELPING FILM PRODUCERS. DILG Secretary Benjamin Abalos Jr. Film Development Council of the Philippines chair and veteran actor Tirso Cruz III and representatives from local movie production firms hold a press briefing in Camp Crame, Quezon City on Thursday (Jan. 18, 2024). Abalos vowed to look into the plight of local film producers who are complaining of excessive taxes and losses due to piracy. (PNA photo by Ben Briones)
MANILA – The Department of the Interior and Local Government (DILG) on Thursday vowed to assist local film producers who are complaining of excessive taxes and losses due to piracy.
DILG Secretary Benjamin Abalos Jr. made the assurance following a meeting with Film Development Council of the Philippines (FDCP) chair and veteran actor Tirso Cruz III and representatives from the local entertainment industry.
Abalos floated the possibility of a three-year moratorium on the collection of amusement taxes by local governments units (LGUs) from film producers.
“Meron na silang VAT (value-added tax), meron pa silang amusement taxes. VAT is 12 percent, (amusement) tax is 10 percent at kung nagsho-shooting sila, kaliwa't-kanan na permits ang kailangan nila (They are paying VAT and amusement taxes. VAT is 12 percent and amusement tax is 10 percent. And if they have movie shoots, they have to secure a lot of permits)," Abalos said in a press conference in Camp Crame, noting that producers' earnings from the total sales of movies account for only a maximum of 30 percent.
Abalos said he would convince local officials to adopt the measure to help boost the local film industry recover.
"It's not only Filipino movies that are being shown in cinemas. We still have foreign films. Maybe, out of 10 films, we only have three Filipino films. Maybe we can waive this tax for them, at least for the next three years, so they can recover from their losses," he said in a mix of English and Filipino.
The DILG chief also called on LGUs to streamline the procedure of securing permits for movie production activities.
Abalos said some LGUs in Metro Manila such as Mandaluyong, Quezon City, Las Piñas and Pasay are now imposing either zero or minimal amusement taxes on local films.
Film producer and lawyer Joji Alonso, meanwhile, welcomed the move, noting the local film industry is already burdened by a small audience and high production cost.
“From PHP100 million (earnings), you first deduct the amusement tax so that leaves you with PHP90 million, and then you divide that between the cinema operators and the producers so you’re left with PHP45 million. From the PHP45 million, you pay a booking fee to the distributor ranging from 5 to probably 20 percent. And then from that net amount, deduct again payment for the value-added tax of 12 percent,” Alonso said.
She added the possible amusement tax holiday would also benefit other stakeholders.
“For every hundred million, the producer gets approximately PHP35 (million) to PHP37 million net. If you produced a film that costs PHP50 million, automatically you lose anywhere from PHP15 (million) to PHP17 million. So the impact of the 10 percent which would be declared as a tax holiday hopefully will be very beneficial to the producers because that gives you an added 5 percent because the cinema operators will also benefit from the remaining 5 percent,” she added.
Abalos, meanwhile, said law enforcement agencies such the Philippine National Police (PNP) will help boost the campaign against piracy.
He also renewed his call for a stop to piracy which greatly hurts the local film industry.
"Sa bawat ginagawa niyong ganyan na ninanakaw ninyo, baka mag-give up ang mga producers at wala nang pelikulang ipalabas, yun na lang ambag natin sa kanila (Everytime you steal content like that, the producers might give up and no more movies will be released. This is the only way we can help them),” he added. (PNA)
