Which local government unit is NOT allowed to levy an amusement tax?

The correct answer identifies the barangay as the local government unit that is not permitted to levy an amusement tax. In the Philippines, the power to levy taxes is assigned to various local government units (LGUs) based on their classification and jurisdiction.

Barangays, being the smallest administrative division, have limited taxing powers primarily focused on local services, community needs, and basic revenue generation to support their operations. Amusement tax, which is typically imposed on various entertainment activities, is usually within the jurisdiction of cities and municipalities. Provinces, while also limited in their taxing abilities, may have broader powers compared to barangays, including imposing certain taxes.

Cities and municipalities have more expansive revenue-generating authority as outlined in the Local Government Code. This includes the ability to levy an amusement tax since they cater to a larger population and host more entertainment venues. Thus, the prohibition on barangays from imposing an amusement tax reflects the structured hierarchy of taxing powers among the different levels of local government, ensuring that key revenue sources are managed by those units that can effectively regulate and benefit from such taxes.