Mexico's film industry appeals to congress

Diego Luna, Pablo Cruz make a plea against cuts

By JAMES YOUNG

A cadre of film bigwigs, including thesp Diego Luna and Mexican Academy prexy Pedro Armendariz Jr., went to Mexico’s Congress on Oct. 27 to make sure that federal subsidies to the film biz stayed put while also asking that a related tax headache be cleared up.

The star-studded delegation spent the day pressing the flesh with congressional leaders, despite a promise by president Felipe Calderon, announced weeks ago, that a proposed 46% cut to Mexican film commish Imcine and a 20% cut to the tax incentive program, Article 226, would not happen — cuts that Canana Films honcho Pablo Cruz later said "would mean we all quit and become waiters."

Congress is to submit its budget to Calderon on Nov. 15.

Luna told lawmakers, "Government should see not only film but all culture as a necessity, even more so in times of crisis."

Credited for the booming biz here, the 226 tax initiative allows companies to write off up to 10% of their taxes to invest in films. Late last year, Mexico’s IRS — Hacienda — ruled that companies that participate in the program had to pay a 28% tax on that donation, to the ire of many — a fact that cast a shadow over this year’s film market in Guadalajara.

Referring to Hacienda as "a bunch of bastards," Armendariz pleaded with Congress to remove the added tax burden permanently by changing the law.

According to Cruz, congressional leaders and members of the Radio, Telecommunications and Film committees of both chambers seemed receptive to both proposals.