AUGUST 23, 2011

NR # 2504B

House approves bill granting incentives to local music industry

The House of Representatives has approved on third reading the bill providing for tax exemptions and subsidy to the local music industry to encourage the creation of original Filipino music and help make the industry become internationally competitive. House Bill 4443 exempts pop, rock or similar concerts that feature mainly Filipino artists and Filipino compositions from paying the amusement tax. The bill authored by Reps. Teddy Casio (Partylist, Bayan Muna) and Sigfrido Tinga (2nd District, Taguig City) seeks to amend Republic Act 7160 or the Local Government Code. Tinga said the over taxation on their gross income makes it difficult for the local music industry to compete against better-funded and institutionally supported foreign products. It is high time for the state to be proactive and provide the necessary legislative and financial support to ensure that Filipino culture survives and flourishes, Tinga said. Casio said the high and arbitrary amusement taxes being paid by concert artists and producers have prohibited them from earning enough with some barely breaking even. The lack of incentive dissuaded producers and managers from organizing live performances, at the very least, they scrimp on production resulting in lower employment opportunities in the industry and the tendency to hold back the artists creativity in favor of economic practicalities, Casio said. The bill provides that proceeds from the amusement tax from concerts and other musicrelated presentation may be earmarked for subsidizing workshops of local theater musicals and/or training and workshops for local artists and composers. Earmarking the proceeds from amusement tax from concerts of foreign artists for muchneeded workshop and training subsidies will further empower the music industry and encourage the creation of original Filipino music, Casio said. Under the bill, the rules and regulations to effectively implement the measure shall be promulgated by the Department of Interior and Local Government (DILG), National Commission for Culture and the Arts, different music industry guilds and organizations, producers and other stakeholders. The co-authors of the bill are Reps. Hermilando Mandanas (2nd District, Batangas), Lucy Gomez (4th District, Leyte), Romero Quimbo (2nd District, Marikina), Eulogio Magsaysay (PLAVE), Mel Senen Sarmiento (1st District, Western Samar), and Jerry Treas (Lone District, Iloilo), among others. (30) aam