City objects to SC ruling to remit P76.8M to film council

By: Jose Santino S. Bunachita August 12,2015 - 08:37 AM

CEBU City Hall will ask the Supreme Court to reconsider its decision ordering the city to remit P76.8 million in amusement taxes to the Film Development Council of the Philippines (FDCP).

City Hall lawyer Eleodoro Diaz said the city doesn’t see enough grounds to remit the taxes which it collected from SM Prime Holdings Inc.

The Supreme Court decision though upholds the city’s right to collect 30 percent of gross ticket sales as amusement taxes from local movie house operators in the city.

“We will file a partial motion for reconsideration to the Supreme Court. There’s no reason for the city to remit because it has been declared unconstitutional. It’s a huge task for the city government because it was a decision en banc,” Diaz said.

Diaz said they will file their motion within 15 days from receipt of the decision.

When sought for comment, Mayor Michael Rama said the matter will he handled by the City Legal Office.

Republic Act 9167, which created the FDCP, states that amusement taxes from  theaters should be remitted to them.

The provision was declared unconstitutional by the Supreme Court.

A case was filed by the city government and some theater owners against FCDP in the Regional Trial Court in 2009.

The courts ruled in favor of the city government and the cinema owners.

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TAGS: Film Development Council of the Philippines, taxes

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