BIR Ruling

October 9, 1972 Mrs. Rosalinda G. Antiporda Cine Moderno, Inc. 2274 Legarda Street Sampaloc, Manila M a d a m : This refers to your letter dated August 2, 1972, requesting in effect for an opinion as to whether or not a municipality can still impose an additional tax in excess of the 5% amusement tax limitation imposed on local government under Section 260 of the Tax Code as amended by Republic Act No. 6110, in connection with Section 1, Manila City Ordinance No. 2950 imposing additional amusement tax on every admission ticket sold in all cinematographic film exhibitions in Manila theaters. In reply, I have the honor to inform you that as ruled by the Honorable, the Secretary of Finance, the 5% limitation imposed on local governments as provided for under the second paragraph of section 260 of the Tax Code, as amended by Republic Act No. 6110, which reads as follows: "SEC. 260. Amusement taxes. . . . xxx xxx xxx "In the case of boxing exhibitions, there shall be collected from the proprietor, lessee, or operator an amusement tax at a rate equivalent to fifty per centum of the tax prescribed in the preceding paragraph: Provided; That no local government shall impose any tax in excess of five per centum : Provided, further, That all laws and ordinances in contravention hereto are repealed. applies specifically only to boxing exhibitions and not to other places of amusement. Accordingly, Manila Ordinance No. 2950, imposing additional amount for every admission ticket sold in all cinematographs in Manila is legal and not covered by the limitation imposed under the foregoing provision. aisadc Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue