Acting chair of the Metropolitan Manila Development Authority (MMDA) and overall concurrent chair of the Metro Manila Film Festival (MMFF), Don Artes, stated in a Thursday announcement that the amusement tax "adds a financial burden to local film producers, potentially affecting the sustainability of the Filipino film industry."

In response, the MMC passed a resolution to waive the tax, which will be implemented by each local government unit in Metro Manila.

Artes explained, "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 Jan. 8 to Dec. 24 of every year for the next three years."

During an MMC meeting on Wednesday, film director Jose Javier Reyes, representing the Film Development Council of the Philippines, described the current state of the Filipino film industry as "dismal" and highlighted significant decline.

Reyes pointed out that the industry faces challenges such as the lingering effects of the Covid-19 pandemic, competition from streaming platforms, piracy, and heavy taxation.

"A producer needs to pay three types of taxes for each film, including 10 percent 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.

In January, stakeholders in the local movie industry raised the same concerns to Department of the Interior and Local Government (DILG) Secretary Benhur Abalos during the inaugural Manila International Film Festival.

Abalos expressed full support for revitalizing the Filipino filmmaking industry and bringing back local moviegoers to cinemas. He stated, "The DILG is fully committed to helping the industry by reinvigorating the Filipino filmmaking industry and bringing back the local moviegoers into watching in cinemas again."