Hyderabad: A PIL has been moved before the Hyderabad High Court challenging the entertainment tax exemption to certain Telugu feature films by the governments of AP and TS. The Cine Prekshakula Viniyoga Darula Sangham, represented by its secretary M. Venugopal Rao, moved the PIL stating that as per Rule 34 of Entertainment Rules, 1939, tax exemption was fixed at 50 per cent only, but both governments granted 100 per cent exemption to two Telugu movies, which is illegal.
The petitioner told the court that both governments have issued the GOs granting 100 per cent entertainment tax exemption to Anushka starrer Rudrama Devi and Balakrishna starrer Gautamiputra Satakarni. The petitioner said that despite 100 per cent tax exemption, cinema theatres collected full amount on every ticket from viewers.
He alleged that the tax exemption was granted only to benefit the film producers. Mr Rao urged the court to suspend operation of the GOs issued by AP and TS governments exempting the two films from entertainment tax besides ordering for recovery of the money collected by the producers.
