Motion Picture Assn. prexy Jack Valenti has written to Mexican president Vicente Fox warning that a one-peso (10¢) fee levied on admissions may jeopardize the majors' investments in local production.
The coin raised by the tax, introduced in January, will be used by the Mexican Film Institute (Imcine) to fund local pics.
Valenti hinted the levy could affect relations between the two countries and prompt the Hollywood majors to withdraw from local production in Mexico.
"We can confirm that Mr. Valenti did send the letter and we're scheduling meetings to address this subject," an MPAA spokeswoman told
Daily Variety Monday.
Fox's office did not respond to requests for comment, and Imcine topper Alfredo Joskowicz was not reachable.
However, Fox is powerless to withdraw the measure, approved by the Mexican congress as part of a new federal film law. Only the legislative branch may remove or amend that law, and Fox does not have a majority to force it through.
Based on the 160 million tickets sold in 2002, the levy will generate close to $16 million for Mexican films this year, roughly tripling Imcine's production budget.
Mexico's filmmakers back the scheme, but exhibitors were against it, arguing the levy would discourage filmgoers.
Ticket prices average about $3 nationwide, with higher prices in the capital.
But members of congress were swayed by the industry's argument that it needed more help after setbacks and production cuts in 2002.
Imcine supported just three of 14 local features produced in Mexico last year, whereas in 2000, Mexico turned out 28 features, of which 15 were funded by Imcine.
Valenti's move comes at a time when the majors have been stepping up their production activity in the region, with Disney co-producing its first local theatrical production in Latin America, under the Miravista banner, its joint venture with Spain's Admira.
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