In contrast, Bangkok operates under a different tax system, typically applying a seven percent VAT without a comparable amusement tax on gross ticket sales, according to www.siam-legal.com. This allows approximately 93 percent of ticket revenue to remain before expenses are distributed across stakeholders. The wider margin is seen as a key factor in why more large-scale tours are staged in Thailand.
For example, on a hypothetical P100 million gross ticket sale, a Manila-based event would immediately lose P30 million to taxes, leaving P70 million to cover all remaining costs and revenue shares. In Bangkok, the same show would incur about P7 million in tax, leaving roughly P93 million for distribution.
Beyond taxes and talent fees, promoters also shoulder additional operational costs such as venue rental, security, logistics, marketing, equipment imports and production expenses. These layered costs further tighten margins in markets with higher upfront taxation.
Industry stakeholders argue that unless shows are nearly guaranteed sellouts — typically 90 to 100 percent capacity — the financial risk in Manila remains significant. This has contributed to a growing perception of the city being skipped in favor of more financially favorable destinations such as Bangkok, Singapore, Jakarta, and Kuala Lumpur.
So, the issue is not the lack of interest from artists, but rather our country’s tax system. Your favorite artists are not ignoring you; it is the Philippine tax system. And where does the revenue ultimately goes? We all know where.