The Metro Manila Council (MMC) on Thursday, February 29, suspended the collection of amusement taxes for three years in a bid to support local films.

Under the resolution, amusement taxes for the screening of local films in Metro Manila will be scrapped for the next three years since its imposition “adds a financial burden to local film producers, potentially affecting the sustainability of the Filipino film industry.”

“In support of the resolution, they will amend their respective local revenue codes to waive the amusement tax for Filipino movies exhibited in Metro Manila from January 8 to December 24 of every year for the next three years,” MMDA chair Romando Artes said.

Film director Jose Javier Reyes noted that the country’s film industry is facing a significant decline with streaming platforms, content piracy, and heavy taxation posing the main challenges faced by people in the industry.

“A producer needs to pay three types of taxes for each film including 10% amusement taxes together with other taxes such as Value Added Tax and Income Tax, making us the most heavily-taxed movie industry in the world,” Reyes said, underscoring that the suspension of amusement taxes would ease the burden and denote the film industry’s survival.

The resolution excludes the period during the annual Metro Manila Film Festival (MMFF) which runs from December 26 until January 7.