Indian movie industry demands removal of double taxation system in the sector to sustain, said movie biggies in Hyderabad today.
According to Mr. Yash Chopra, ace movie producer and Chairman, FICCI Entertainment Committee the multiple taxation on the industry is serious threat for the survival.
“It is a serious threat to the movie industry. We are already paying services tax. We are paying corporate tax.
These are serious issues. I think we all should sit together and sort out. We made representations to the Government also,” Mr. Yash Chopra told media persons on the sidelines of “media and Entertainment Business conclave” a two-day deliberation organised by the FICCI here.
D Suresh, a prominent producer of Telugu films and promoter of Ramanaidu studio said Indian film industry is the only industry that is subjected to multiple taxes. He demanded the Government remove either GST or entertainment tax being collected by the State Governments.
The industry has been pitching for inclusion of the entertainment taxes into the GST regime to create a common tax rate in all States and also reduce the tax burden, on account of the input tax credit to be available in GST system.
The Finance ministry had assured the film industry that all the taxes levied by the State Governments would be subsumed. However, there is no clarity if the taxes levied by the municipal authorities or local bodies will be absorbed in the GST.
“We are the only product that is double-taxed. We are already paying entertainment tax. No other product in the country will have double taxation. Either you put GST and remove entertainment tax. Don’t make it multiple,” Mr. Suresh said.
Earlier, Ramoji Rao, Chairman of Eenadu, in his key note address said advanced digital technology may one day make it possible for the film maker to directly release the digitised film content to theatres eliminating the risk of piracy.