There’s bad news for filmmakers and cine goers. The new GST rules are not very favourable to the industry as cinema has been clubbed in the same category as gambling, betting, etc. Considering the 28 per cent tax levied on theatres, we ask filmmakers, scholars, and others associated with cinema as to why cinema bears the brunt and is considered a sinful, hedonistic indulgence.
The new GST rules are not very favourable to the industry as cinema has been clubbed in the same category as gambling, betting, etc.
Retaining ticket prices for now
The ticket price is the same for now, because we have no clarity on it. The new tax system is a loss to the producer, distributor and exhibitor because all three have to share it. The new GST has also removed the slab system which was running in many small cities. Without that, most of the collection goes towards tax and nothing comes to the exhibitor and others. Earlier, if the film collected Rs 10 lakh per show, they used to pay Rs10,000, but now, they will have to pay more than Rs 1 lakh as tax. Many theatres and multiplexes are retaining the same price, but showing different rates to beat the system.
– Sunil Narang, Owner, Asian Cinemas Multiplexes
Many theatres and multiplexes are retaining the same price, but showing different rates to beat the system.
Cinema is culture
Cinema is part of our culture. People watch it to unwind and it is not right to put it along with cigarettes, liquor, betting and gambling. The industry should be given a separate tax instead.Most regional cinema in our country is supported by the respective state governments in the form of lower taxes or subsidies. Now, they are talking of an 18 per cent tax for tickets below Rs 100 and 28 per cent tax if the price is above Rs 100. Big films will not be affected by the new tax system, but the small and medium films will suffer a lot. In the long run, this common tax system is good for the country, but there is no transparency at present. We don’t know what will happen and how the system will function in the future. Till Friday night, we couldn’t come to a conclusion on what price we should fix for the ticket as there is no coordination between the local commercial tax department and the GST council.
– K. Damodar Prasad, Secretary, Telugu Film Chamber of Commerce
‘Big confusion, no ticket price hike’
The commercial tax officials informed that the present ticket price is inclusive of all taxes, so even with GST, the ticket price is the same. A government order issued a few days back has been suspended for two weeks, so there is no ticket price hike for now. It is all confusing and there is no clarity. Earlier, the entertainment tax was 15 per cent and now with the GST, there is 3 per cent extra tax, which is a loss for us owners. This will also impact distributors and producers.
– N. Sadanand Gowda, Owner, single screen theatres
‘An insult to the film industry’
Putting recreation and any kind of entertainment in the highest tax bracket is sad and I take it as an insult to the film industry. Drawing similarities between gambling and films is more in the commercial sense. Are families not supposed to enjoy themselves? The GST will only increase ticket prices and make watching a film expensive. All these pro-government stars from the industry should request the government to make a change.
– S.M.M. Ausaja, Film historian
‘Protests have gone in vain’
As of now, there is no clarity to the new GST rules. I hope the state doesn’t levy additional taxes because then, it will become very expensive for both film producers and distributors. As for placing gambling and entertainment in the same high tax bracket, that is just their mentality and we can’t do much, except live with it. We had even protested this — but to no avail.
– Ramesh Taurani, Producer
— With inputs from Pooja Salvi
