APRIL 21, 2013

NR # 3080

Tax exemptions and subsidies for local music industry pushed

A House leader today appealed to the Senate to take advantage of the resumption of session this June to approve the proposal to provide tax exemptions and subsidies for the local music industry which was passed on third and final reading by the House of Representatives as early as August 3, 2011. Rep. Teddy Casio (Party-list, Bayan Muna) issued the call for the Senate approval of the proposal embodied in House Bill 4443, which he and 32 other congressmen have authored. I am still appealing to the Senate to consider its adoption and approval when we resume in June, although this is not likely, said Casio, Chairman of the House Committee on Small Business and Entrepreneurship Development. At present, Casio said it is a dark time for the Filipino music industry as piracy levels have reached 83 percent according to the Philippine Association of the Record Industry (PARI). With the record industry flailing, artists rely on live performances to make a living but this has become just as challenging with the threat of foreign production and high production cost according to him. Producers and artists are further burdened by multiple taxes, from value added-tax (VAT) paid for services and materials and amusement tax paid to the local government, said Casio. House Bill 4443 or the proposed Local Music Industry Incentives Act provides it is the declared policy of the State to first and foremost, encourage and promote the creation of original Filipino music and provide support to make the industry internationally competitive. It shall also ensure that the music industry provides cultural opportunists to all Filipinos. The measure seeks to amend Section 140 of Republic Act 7160, otherwise known as The Local Government Code of 1991, as amended by RA 9640, so that the holding of operas, concerts, dramas, recitals, painting and art exhibitions, flower shows, musical programs, literary and oratorical presentations, including pop rock, or similar concerts as long as they feature mainly Filipino artists and Filipino compositions shall be exempt from the payment of amusement tax. Furthermore, the proceeds from amusement tax from concerts and other music related presentation may be earmarked for subsidizing workshops of local theater musicals and/or training and workshops for local artists and composers. The remaining proceeds shall be shared equally by the province and the municipality where such amusement places are located based on the bill. House Bill 4443 substituted HB 3787 filed by Casio and HB 3200 authored by Rep. Sigfrido Tinga (2nd District, Taguig City). (30) rbb