The nation’s film and TV trade is “highly dependent” on freelance staff and it needs to be regarded into, a Department of Trade and Industry (DTI) official instructed lawmakers Tuesday.
“Our study showed the industry is highly dependent on freelancers, and we need to look into that because even big studios could only hire full-time workers in limited numbers,” Assistant Director Jo-Dann Darong of the DTI’s competitiveness bureau mentioned in a listening to by the House Committee on Creative Industry and Performing Arts.
“These unorganized film workers and technical crews in the Philippines may have resulted in bargaining down pay and other compensation items.”
As of 2018, there are solely 5,927 absolutely employed people within the movement image, video and tv trade (MPVT), Darong mentioned, including it’s unlikely that the determine has elevated because of the COVID-19 pandemic.
“This (5,927 figure) is as of 2018 which is the last census, and we really need to provide data on those employed as freelance workers,” Darong mentioned.
“We need a lot of effort in making sure that the official statistics are available because the freelance workers, the self-employed ones, are the ones pushing the agenda and generating revenues in film production and stages,” he added.
The House panel probe, sought by Las Piñas Representative Camille Villar, regarded into the plight of Philippine cinema geared toward producing employment in film productions, reviving Philippine cinema’s golden period and maximizing efforts to safe the nation’s first nomination or win within the Academy of Motion Pictures and Sciences.
COVID-19 pandemic
Darong mentioned the pandemic has resulted in constrained film manufacturing course of, with studios being confined to a manufacturing bubble or confining the complete solid and crew in a single location to stop COVID-19 transmission.
He mentioned this setup resulted in scheduling issues for a lot of freelancers who at the moment are compelled to decide to being current within the manufacturing bubble, limiting the variety of engagements they’ll do.
“This (production bubble) also entailed added cost for the producers which would increase the investment necessary to produce a movie,” the DTI official mentioned.
And whereas Filipino movie staff have satisfactory stage of expertise, Darong mentioned there’s a want to boost their competencies by participating them in coaching and workshops overseas.
“There are emerging new competencies that need to be embraced by the Filipino film workers and players so we can globally,” he mentioned.
Aside from limiting manufacturing, Darong mentioned the COVID-19 pandemic additionally diminished earnings from the Metro Manila Film Festival (MMFF), noting that field workplace income in 2020 solely reached P50 million or method behind pre-pandemic earnings of P995 million in 2019 and P1.06 milion in 2018.
“There is really a need to look at revenue sources and reduce cost associated, transactional or not, in establishment and production of film,” Darong mentioned.
High taxes
Lawyer and movie producer Joji Alonso agreed, saying {that a} box-office movie, which grossed at the very least P100 million, might nonetheless lead to losses for that film’s producer as a consequence of excessive taxes.
She cited {that a} movie producer would want to pay for the next:
- 10% amusement tax
- 20% worth added tax (VAT)
- 5% distribution charge and
- 25 to 35% revenue tax for solid and crew
“In all aspects such as pre-production, principal photography and post-production, film producers pay all the withholding taxes and VAT of the artists, staff and crew,” Alonso mentioned.
By Alonso’s computation, a movie that grossed P100 million within the field workplace can be left with simply P37,620,000 million after paying amusement tax, VAT and distribution free alone.
“For a movie with a manufacturing value of P50 million, a producer loses P12,380,000 million. If a producer does make a revenue, the company pays an revenue tax of 20 to 25%, and within the case of single proprietors, they pay taxes as excessive as 35%. Most motion pictures launched in 2022 didn’t even attain P10 million in product sales,” Alonso identified.
Both Darong and Alonso appealed for presidency help within the film trade. —KBK, GMA Integrated News
