The House Committee on Ways and Means has approved a proposal to provide tax exemptions and subsidies for the local music industry to make it internationally competitive and encourage the creation of original Filipino music.
Approved by the Committee chaired by Rep. Hermilando Mandanas (2nd District, Batangas) is House Bill 4443, which shall be known as the "Local Music Industry Incentives Act." The bill is in substitution of House Bill 3200 filed by Rep. Sigfrido Tinga (2nd District, Taguig City) and HB 3787 by Rep. Teddy Casiño (Party-list, Bayan Muna).
Tinga said the Philippines is a country of creative people whose potential is being stifled by the lack of institutional support to what has become a highly competitive environment.
"It is high time for the state to be proactive and provide all the necessary legislative and financial support to ensure that Filipino culture survives and flourishes," said Tinga.
Casiño 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). The International Intellectual Property Alliance likewise had ranked the country as fifth in global and second in Asian music piracy, according to him.
"In 2009 alone, we lost around $112.2 million audio CD sales. This has extremely affected record sales which has continually declined from a record high of P1 billion in sales in 2000 to several hundred million pesos today. With the record industry failing, artists rely on live performances to make a living, but this has become just as challenging with the threat of foreign competition and high production costs," said Casiño.
Casiño said producers and artists are further burdened by multiple taxes, from value added tax paid for services and materials and amusement tax paid to the local government.
House Bill 4443 provides that the State, in its belief that culture is a human right and a manifestation of the freedom of belief and expression, shall promote and protect the Filipino national culture, which includes the local music industry.
"First and foremost, it shall encourage and promote the creation of original Filipino music and provide support to make the industry internationally competitive. It shall also ensure the music industry provides cultural opportunities to all Filipinos," Casiño said.
The bill seeks to amend Section 140 of Republic Act 7160 otherwise known as "The Local Government Code of 1991" as amended by RA 9640. It provides that the province may levy an amusement tax to be collected from the proprietors, lessees, or operators of theaters, cinemas, concert halls, circuses, boxing stadiums, and other places of amusement at a rate of not more 10 percent of the gross receipts from the admission fees.
It also provides 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 be exempted from the payment of tax herein imposed.
Moreover, the proceeds from the amusement tax from concerts and other music- related presentation may be earmarked for subsidizing workshops for local theater musicals 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.
Section 4 provides that the Department of Interior and Local Government, National Commission for Culture and the Arts, the different music industry guilds and organizations, as well as producers and other stakeholders shall, within 60 days from the effectivity of the law, promulgate the necessary implementing rules and regulations.
The bill is co-authored by Mandanas and Rep. Paolo Javier (Lone District, Antique), Chairman of the Sub-committee on Local Government.
source: http://www.congress.gov.ph
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