Metro Plus
Bangalore
Chennai
Coimbatore
Delhi
Hyderabad
Kochi
Box office tinkles
|
The industry is optimistic about the government's move to abolish the dreaded slab system
|
Photo: Arun Roy Chowdhury
THE GOVERNMENT has finally intervened to set right some pressing money matters that have been dogging the film industry. The relief comes in the form of a tax policy that's been framed for the comfort of producers, distributors and exhibitors.
It is a known fact that the economics of the film industry work on the principle of taxing the film viewer. In this context, the entertainment tax has always been an issue of debate. Besides, after the introduction of the slab system, there was also an order allowing theatres to fix their own ticket rates. As a result, the rates were so hiked that viewing a film cost Rs 300 for a family of four. All this and the fall of standards in cinema has contributed to a decline in audience numbers in theatres.
The slab system was introduced by the late N.T. Rama Rao. But the former chief minister did not take a unilateral decision in this regard. He announced the system in 1984 only after industry heavyweights requested him to abolish the then existing percentage system.When NTR did so, the industry went overboard in lauding the move then. The basic reason for the jubilation then was that it put an end to tax raids on theatres. Some corrupt officials even had the pleasure of sharing tax amounts, allowing theatres to record only partial attendance in their books even when the film was running to full houses. However, the very same system is now being derided by the film world.
About turn
So what's with the volte-face? The slab system is beneficial only when there is enough attendance - half of the theatre or more, as the owner has to pay the full tax prescribed irrespective of whether there is good audience strength or none at all. This forced many theatres to reduce the number of seats in lower classes and increase correspondingly in higher classes. This, but naturally, led to lack of patronage which in turn has put the onus on exhibitors and distributors to pay from their pockets.
Not surprisingly, the new Government Order passed in the Assembly to do away with the slab system has come as a whiff of fresh air. The new policy retains the existing percentage of tax on big and small films, but only on the actual number of tickets sold. A look at the structure of the policy reveals that it has been designed on the lines of the system followed in Tamil Nadu. In fact, the Telugu film industry had earlier drafted a memorandum suggesting adoption of the Tamil Nadu system. According to this the theatres in municipal corporations, select grade, special grade and first grade municipalities, will hereafter pay tax based on the tickets actually sold - 15 per cent on high-budget movies and 7 per cent on low-budget ones. Films made in other states and dubbed ones would attract 15 per cent tax while old classics would be charged at 7 percent.
More money
Earlier, the exhibitor collected 50 paise on tickets sold as theatre maintenance charge. This has now been raised to Rs 1. Most importantly, the GO also lays down checks and balances to check piracy.
The Chief Minister has also decided to appoint a committee to study multiplex theatres and also the possibility of increasing their numbers. At this stage, the industry is keeping its fingers crossed, obviously concerned as to what shape these measures would take in the final GO, to be prepared by the bureaucracy.
GUDIPOODI SRIHARI
Printer friendly
page
Send this article to Friends by
E-Mail
Metro Plus
Bangalore
Chennai
Coimbatore
Delhi
Hyderabad
Kochi
|
