BAGUIO CITY — Baguio City artists have expressed concern over a public advisory from the Baguio City Treasury Office (CTO) requiring permits and taxes for local events.

Event organizers said the rules create unnecessary financial and administrative burdens for small arts activities. The issue highlights tensions between local tax regulations and the city's arts community.

The CTO issued an advisory citing Section 2 and Section 9 of Tax Ordinance No. 2000-001 and Republic Act No. 9640. The advisory requires a Mayor's or Special Permit and imposes an amusement tax of 10% on gross receipts for special events and 5% for sports activities. Event organizers must also comply with a six-step process, including ticket registration, physical inspections during events, and ticket reconciliation.

Theater director Ferdie Balanag criticized the advisory, saying it makes it difficult for creators to stage small productions that generate little income. He said the city should remove administrative obstacles and provide more opportunities instead of adding regulatory requirements.

"If the city truly believes in supporting the arts, it should remove unnecessary obstacles, not add more. Support our creatives with more opportunities, not more red tape," Balanag stressed.

He added that nothing says "support the arts" quite like drowning artists in permits, inspections, and paperwork.

Balanag also pointed out the contradiction in promoting Baguio as a Creative City while increasing permit requirements. He said the designation "Baguio Creative City" feels more like "Baguio Bureaucratic City" under these policies. His comments generated widespread discussion among local creators online.

Other artists and residents described the treasury advisory as a step backward. Members of the community pointed to a 2022 proposal presented to the City Council titled "Incentivizing Creativity in Baguio City." Commenters urged the Creative Baguio City Council to revive the proposed policy.

The 2022 proposal states that creativity drives local cultural identity, economic growth, tourism, and education. It recommends financial assistance, grants, tax incentives, greater access to spaces, and simplified permit procedures to support cultural workers. Supporters said these measures would help translate Baguio's UNESCO Creative City recognition into tangible benefits for artists.

Community members also suggested adopting a tiered regulatory framework instead of uniform taxation. Under the proposal, smaller events would be exempt, while larger commercial events earning more than P3 million in profit would be subject to taxes. Critics argued that taxing every small event stifles local innovation and discourages event organizers.

Artists also questioned the city's priorities, citing its support for artificial intelligence-generated art while imposing fees on in-person creative events. Community members called on city officials to provide subsidies and hold consultations with local creators, saying policy adjustments are necessary to maintain Baguio's standing as a creative hub.