Thursday, December 1, 2022
News

GST rate of 28 per cent 'huge setback' for film industry: Siddharth Kapur

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

Mumbai | Saturday, 2017 7:15:04 PM IST
The government's decision to put cinema tickets under the 28 per cent tax bracket in the Goods and Services Tax (GST) regime is a major setback for the film industry, feels Siddharth Roy Kapur, President of The Film and Television Producers Guild of India.

"The GST rate of 28 per cent announced on cinema tickets is a huge setback for the film industry. The industry had proposed a rate of 5 per cent in our representations to the government, in order to revive a business which has been struggling from lack of fresh investments in new cinema screens and a significant increase in online piracy," Kapur said in a statement.

The GST Council on Friday decided a four-slab tax rate for services. The GST regime will roll out from July 1.

"In the existing tax regime, the cinema exhibition sector was exempted from service tax and state VAT (value added tax), and entertainment tax was the only tax imposed on cinema tickets by states and local bodies," he added.

"The average entertainment tax collected nationally by the government across all states and languages was in the range of 8-10 per cent of gross box office revenue. Hence, logically the GST rate should not have been more than 12 per cent, in order to avoid any exchequer loss," Kapur said.

He termed it as "disheartening" on behalf of the central government.

"The government does not see the immense contribution that a vibrant Make In India' film production sector can have in enhancing the soft power of the country.

"We are one of the only local film industries in the world to have thus far withstood the onslaught of Hollywood," Kapur said.

He added that such a decision has landed the entertainment industry in "real danger".

"Unfortunately, with such a lack of interest and support from the government, the Indian film industry which should be one of the primary forms of cultural outreach from India to the rest of the world, finds itself in real danger of coming undone," Kapur said.

--IANS sas/ag/bg

( 357 Words)

2017-05-20-18:32:10 (IANS)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
WriteSome raises pre-seed funding of und...
Quintillion Business Media launches BQ P...
Aluminium extrusions and the country's g...
For seamless travel, govt to launch faci...
Sanjay Malhotra takes charge as revenue ...
Voix Digital wins Digital Mandate for Ad...
More...
 
INDIA WORLD ASIA
Noble deed: Delhi witnesses increase in ...
BJP's Rivaba Jadeja casts her vote in Ra...
Assam CM distributes 35,800 scooters amo...
Gujarat Assembly elections: To motivate ...
Women made to lie down on ground at a st...
MP Governor Mangubhai Patel, Gujarat Min...
More...    
 
 Top Stories
FIFA World Cup 2022: Ziyech, Nesyri... 
MEA assures protection of South Kor... 
Assam Rifles flag off National Inte... 
"This is shocking": Kerala HC expre... 
Green tea extract may be harmful to... 
SC questions use of animals in Jall... 
Ganga pollution: State files affida... 
Defence Secy Giridhar Aramane inaug...