The Hindu : Karnataka / Bangalore News : Effort on to get total tax concession for remake films

Online edition of India's National Newspaper
Sunday, Aug 19, 2007
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Karnataka

Karnataka - Bangalore

Effort on to get total tax concession for remake films

K.N. Venkatasubba Rao

Chief Minister is said to be against support for the remake cause

Remake lobby is said to be exerting pressure on Kumaraswamy
Tax evasion by some remake film makers detected

Bangalore: Vested interests in the Government and the Kannada film industry have reportedly managed to include the recommendation in a policy paper that remakes should get a 100 per cent tax concession. The paper is being drafted by a committee to evolve a comprehensive policy on films.

This, it is feared, might jeopardise the recent resurgence of novel themes and new talents in the Kannada film industry, although extending tax concession will not burden the exchequer as the number of remakes has come down drastically.

Chief Minister H.D. Kumaraswamy, who is also a producer, distributor and exhibitor, is reportedly not inclined to support the cause of remakes at the cost of the emerging healthy trend. But the influential remake lobby has been exerting pressure on Mr. Kumaraswamy, sources in the Government and industry say.

For instance, even as the Government was deliberating on the policy, a producer who is a close associate of Mr. Kumaraswamy had, in an advertisement of his remake film, thanked the Chief Minister for contemplating to bring remake films under the purview of tax concession.

Since January, 2007, over 125 Kannada films have been launched and they are now in different stages of production. Of them, only a handful are remakes of popular films from other languages. The boom of fresh and original themes and new faces is seen as “threatening the existence” of some seasoned producers, artistes and others who were thriving on the remake culture.

A section of influential people in the industry, who claim close proximity to Mr. Kumaraswamy and who have invested huge amounts and obtained remake rights of Telugu and Tamil films, are now reportedly left in the lurch.

According to sources in the Department of Finance, the Government gave 100 per cent entertainment tax concession for all original Kannada films during 1997.

Following pleas from the remake lobby, which was then in a commanding position, the Government extended 25 per cent, 50 per cent and 75 per cent tax concession for the next three years.

Following public complaints, a special wing of the State Accounts Department reportedly detected tax evasion by a handful of remake film makers. But the Government is yet to act upon the report.

A strict tax collection drive against those responsible for evading taxes in cinema sector since April 1, 2000, will earn a minimum of Rs. 600 crore revenue to the exchequer, sources say.

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