Concert producer seeks reconsideration over SP decision denying 'tax exemption'
The Philippine Media Corporation (PMC) has filed a motion for reconsideration over the decision of the Sangguniang Panlungsod committee on ways and means chaired by Councilor Antonio Pesina denying their exemption from the payment of amusement tax to the city government.
The corporation was the producer of Ms. Leah Salonga's concert in Iloilo City.
In their motion for reconsideration with position paper, the Philippine Media Corporation represented by Ms. Jane Javellana prayed that they be exempted from amusement tax for not falling under the classification of a "pop concert."
"Ms. Salonga delivered classical, Broadway-inspired concert rightfully falling under the genre of a classical concert not a pop concert as suggested by the committee on ways and means."
Copies of the motion for reconsideration was furnished to the committee on ways and means of the Sangguniang Panlungsod.
There are two issues that the committee needs to resolve: (1) on whether or not the live performance of Ms. Salonga produced by the Philippine Media Production falls under the category of pop concert under Section 140 of the Local Government Code of 1991 on Local Taxation and Fiscal Matters and (2) whether or not the live performance of Ms. Salonga should be held exempt from amusement tax under the Local Government Code.
Section 140 of the Local Government Code which deals on Amusement Tax states that the province may levy an amusement tax to be collected from the proprietors, lessees, or operators of theaters, cinemas, concert halls, circuses, boxing stadia and other places of amusement at a rate of not more than 30 percent of the gross receipts from admission fees.
Section 140c defines the rules on concerts which clearly states "the holding of operas, concerts, dramas, recitals, painting and art exhibitions, flower shows, musical programs, literary and oratorical presentations except rock or similar concerts shall be exempt from the payment of the tax herein imposed, " says the Local Government Code.
While Section 140 (b) said that in case of theaters or cinemas, the tax shall be deducted and withheld by their proprietors, lessees or operators and paid to the provincial treasurer before the gross receipts are divided between said proprietors, lessees, operators and the distributor of cinematographic cinema.
The producer argued that Ms. Salonga's concert was not a "pop concert" and therefore be rightfully exempted from amusement tax. "Ms. Salonga has long been renowned for her "Broadway" musicals having evolved into the classics" as she is presently categorized along with her songs." Even an ordinary person with the simplest appreciation for musical performing arts could see type of music.
Javellana, in her motion also discussed what pop songs are. She cited "The Rise and Fall of Popular Music" by Clark Donald which defines pop songs as generally marked by heavy rhythmic element, a mainstream style and traditional structure. The most common variant is strophic in form and focuses on memorable melodies, catchy hooks and the appeal of the verse-chorus-verse arrangement.
Moreover, the producer also argued that exemptions were granted to the different concerts in the city such as Side A, Bamboo, Shamrock, Sitti, Gary Valenciano, and Christian Bautista among others. In the same motion, they categorically questioned the exemption given to Side A band.
"Side A performed a benefit concert last December 14, 2007 in Iloilo City performing ballad music with original bands. The concert was exempted from amusement tax, the same having been categorized by the Sangguniang Panlungsod as neither pop nor rock.
The Side A was given the exemption despite a front act in clear rap-genre given by Kwatro Kantos. The songs performed by the band marked a heavy rhythmic element, a mainstream style distinctive of so-called "pop genre." The major labeling and production companies in the country classify Side A as "pop/ballad" band of the pop/ballad genre.
The exemption granted to the different concerts was initially viewed by producers venturing into the city as welcome change from the stringent imposition of the amusement tax. "It was viewed as a great boon to the progress of the "live performance" industry which served as springboard for future ventures. However, the great blow was delivered with the advent of the Leah Salonga January 19, 2008 concert," the producer lamented.