Collecting Amusement Taxes

Sponsored by Hon. Rodson F. Mayor and Hon. Plaridel M. Morania, both members of the Sangguniang Panlalawigan (SP) of Aklan, the SP approved Tax Ordinance No. 2010 – 001. This is "An Ordinance Amending Article F, Chapter II of Provincial Tax Ordinance No. 3, Series of 1993, An Ordinance Levying Taxes, Fees, Charges and Other Impositions, Prescribing Penalties for the Violations of Its Provisions."

The tax measure was approved during the SP Tenth Regular Session held on March 25, 2010 at Capitol, Kalibo, Aklan. The said ordinance is unanimously approved by the 10 members of the SP present presided by Vice Gov. Gabrielle V. Calizo-Quimpo. Those present are Hon. Daisy S. Briones, Hon. Plaridel M. Morania, Hon. Rodson F. Mayor, Hon. Jean O. Rodriguez, Hon. Selwyn C. Ibaretta, Hon. Jose S. Yap, Hon. Ramon S. Gelito, Hon. Wilbert Ariel I. Igoy, Hon. Teody M. Masangya, Sr., and Hon. Jun Rey I. Tordecillas. The three members absent were Hon. Nemesio P. Neron, Hon. Pedro M. Garcia, and Hon. Gerick M. Templonuevo.

This tax measure is duly attested by Vice Governor Gabrielle V. Calizo-Quimpo and approved by Gov. Carlito S. Marquez after Mr. Odon S. Bandiola, SP secretary, certified as to its correctness.

The tax ordinance is approved in accordance with RA No. 7160 which empowers a local government unit to levy an amusement tax. Moreover, RA No. 9640 has reduced the imposable amusement tax from 30 percent to only 10 percent. The law was approved on July 28, 2008.

However, the rate of amusement tax being imposed and collected by the Province of Aklan is still 30 percent based on the provision of Section 140 (a) of RA No. 7160. This tax is imposed or collected from the proprietors of theaters, cinemas, concert halls, circuses, boxing stadia, and other places of amusement.

In view of the approval of RA 9640 which reduces amusement tax to only 10 percent, the Sangguniang Panlalawigan of Aklan has duly amended Tax Ordinance No. 3, Series of 1993. This will conform with the provisions of RA 9640.

Hence, upon its approval, the provincial government of Aklan will now levy an amusement tax of 10 percent only on incomes of theaters, cinemas, concert halls, circuses, boxing stadia, swimming pools, resorts, gymnasium, video houses, internet cafes, disco houses, bingo houses, and cockpit arenas.

Of course, theaters have closed. But with the reduction of amusement tax from 30 to 10 percent, it is hoped collection will increase.

Tax collectors need to exert much effort in tax collection which requires among others utmost honesty. Cockpits must pay the right amount of tax. Cockpits along the roads add more hazards to both pedestrians, passengers, and motorists. Cockpits add more travel time. Cockpits pollute the air with noise.

There is a perception that cock fighting is cruelty to the birds. Others believe it enhances love of birds for play and gambling.

Circus was popular 50 years ago, but not anymore today. Computation of tax base on entrance fees to amusement centers is easy to compute. But what about the income from consumables? How will the tax collectors compute the 10 percent levied for drinks, food and the use of facilities such as computers, printers in internet café?
Maybe, these will be specifically spelled out in the Implementing Rules and Regulations. /MP