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

The ability to levy an amusement tax is specifically granted to cities under the Local Government Code of the Philippines. This tax applies to entertainment venues and events, such as theaters, amusement parks, and concerts, among others.

Cities, due to their larger populations and greater availability of entertainment options, are typically the primary local government units that engage in such revenue-generating activities. By having the authority to impose this tax, cities can generate additional revenue that can be used for public services and infrastructure improvements.

In contrast, barangays, municipalities, and provinces have specific limitations regarding the types of taxes they can impose. While barangays can impose certain local fees and taxes, amusement tax is not one of them. Municipalities can collect local taxes but also do not have the authority to levy an amusement tax. Provinces, like municipalities and barangays, focus on broader revenue streams and typically do not manage local amusements directly. Thus, the structure of taxation in local government units assigns the right to levy an amusement tax specifically to cities.