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Sri Lanka reduces levy on foreign programmes

B. Muralidhar Reddy

Decision follows meeting between Rajapakse and representatives of private TV industry

COLOMBO: Bowing to demands from the private television industry, the Sri Lankan Government on Sunday slashed levy on certain categories of foreign films, tele-dramas and advertisements with immediate effect.

The decision follows a meeting between President Mahinda Rajapakse and television channel owners, heads of state television institutions and representatives of advertising firms and film and tele-film artists' associations on Saturday.

As per the announcement, there is no change in the levy on foreign tele-drama or film dubbed in Sinhala, Tamil or English. They will have to pay a tax of Rs. 90,000 for every 30 minutes or less. However, a tele-drama originally produced in English will attract a levy of Rs. 10,000 for every 30 minutes or less and any other tele-drama of 30 minutes or less will be charged Rs. 75,000.

In the second category, any film produced in English and telecast without dubbing will attract a levy of Rs. 25,000 and any other foreign film telecast without dubbing Rs. 2,00,000.

In the third category, commercials for any number of telecasts during the 183 days commencing on the date of issue of the certificate of clearance will invite a levy of Rs. 2,50,000. The original levy proposed for such categories was Rs. 10 lakh. At the current rate, a dollar fetches Sri Lanka Rs. 102.

Review panel

The Government said the amended regulations authorised the Secretary to the Ministry of Mass Media and Information and the review panel appointed by him to preview tele-drama/films and commercials to ensure that they were not detrimental to the accepted norms and social and cultural values of Sri Lankan society.

Private television channels in Sri Lanka were agitated over the Government's decision to impose a stiff levy on all foreign-made television dramas, films and commercials from July 1. They said it would be a major blow to the nascent industry.

Besides English serials, Hindi and Tamil television entertainment programmes made in India were hit the most by the levy.

No rationale

The Government had justified the new tax as a necessity to improve and regulate the quality of programmes produced in the country and to "ensure the propagation of Sri Lankan values." However, the Sri Lanka TV Industry Joint Action Committee refuted the arguments advanced by the Government and asserted that they lacked economic or any other rationale. Since hardly any English language entertainment programmes were produced in Sri Lanka, the TV channels that depended heavily on the English language audience faced serious financial difficulties because the levies were sometimes two to three times the cost of the programme, they said.

Chairman of Sri Lanka's Independent Television Network, Anura Siriwardene, told The Hindu that the revised levy package would be acceptable to the industry. "Ideally, there should be no levies. Nevertheless, we are willing to pay reasonable tax."

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