Which local government unit (LGU) is allowed to levy an amusement tax?

A city is allowed to levy an amusement tax as part of its revenue-generating powers. This ability is defined under local government codes that delegate specific taxation powers to different local government units (LGUs). Cities, as urbanized areas, often have higher concentrations of events and activities that generate amusement tax, such as theaters, concert halls, and other entertainment venues.

Amusement tax is typically imposed on gross receipts derived from the operation of amusements and is an important source of revenue for cities, helping to fund local services and infrastructure. Other LGUs like barangays, municipalities, and provinces may have limitations on the types of taxes they can levy based on statutory guidelines, and they do not generally possess the authority to impose an amusement tax on their own. Thus, the answer is correctly identified as a city due to its specific legislative capacity to tax amusements.