FILM INDUSTRY TO SHUT DOWN ON FEB 23

FILM INDUSTRY TO SHUT DOWN ON FEB 23

In protest of the Central Government's proposal to levy service tax,which would increase costs, filmmakers have decided to go on strike

Vickey Lalwani

The Film Federation of India (FFI) has proposed a nationwide shut down of the film industry on February 23, 2012, to protest against the levy of a service tax,which would escalate the filmmaking cost. Whether the strike will be for only a day or continue indefinitely is still unknown.
An insider informed us, "While the cinema industry would definitely suffer due to the strike, most members of the fraternity have decided to support it.The imposition of service tax will cripple the filmmaking process. The Central Government has proposed a service tax of nearly 10.3 per cent.This is not a small percentage.The budget of many films would be hit rather badly."
Now,it remains to be seen whether the Film Producer's Guild, the association of top line filmmakers in India,which is not a part of the FFI, offers support and joins the strike proposed by FFI.
According to industry insiders, Madhur Bhandarkar would be adversely affected by the impending strike. The shoot of his ambitious film "Heroine", starring Kareena Kapoor, would have to be stalled on February 23. Also, Bhandarkar's budget might increase if the service tax proposal is passed.
THE TOLLYWOOD TAKE
The Telugu film industry too will be a part of this one-day strike on February 23, to protest against the government's proposed service tax on the film industry. All film shootings, theaters and any activity related to the film industry will be closed on the day. It is extremely unfair that despite the fact that we have to already pay entertainment tax to the government, we will also be levied this service tax. In other industries, like the hospitality business, the extra taxes are directly added to the original bill and imposed on customers. But nothing like that can be done in the film industry. The service tax will affect the industry adversely. If the government doesn't pay heed to our concern, Tollywood is ready to even go on an indefinite strike. Tollywood
to shut down too
According to filmmaker Ratan Jain, a strike is possibly not the right way to oppose Central Government's proposal. He said, "I have received a letter in this regard. A strike is not the right answer to our woes in this regard. The strike would only make us lose money. A proper representation by the film industry which can address the Finance Ministry would be the right way to solve this."
According to a letter written by the convener of FFI's Service Tax Committee Ravi Kottarakara Rao, the film industry is burdened by a lot of taxation and the imposition of an additional service tax will only add to it.
Mahesh Bhatt expressed his displeasure and supported the strike. He said, "The government has been apathetic to the film industry. Add to this the service tax,which is certainly not welcome.We need to shut shop so that the government sits up and takes notice of this."

Suresh Babu, president, AP Film Chamber of Commerce

The Kareena Kapoor-starrer 'Heroine', directed by Madhur Bhandarkar, will be adversely affected if the service tax proposal is passed

Film industry to strike on Feb 23

Film production all over the country will be shut down protesting the Central Government's proposal to levy service tax

M Suganth

The Film Federation of India (FFI) has called for a strike by all film bodies in the country protesting the Central Government's proposal to levy service tax for films.
At a joint meeting of all the film associations, convened by the FFI on January 10 in Chennai, it was decided to request the finance minister to remove the levy of service tax on copyright. A core committee comprising senior members of the film industry, along with members of parliament, have presented detailed statistics stating the losses of the film industry and the meagre success rate to the finance minister. But they are still waiting for a reply from the ministry.
The Tamil film industry has also decided to lend its support to this token protest.
"Since the service tax is levied by the central government, it affects all film industries in India. So, the Tamil film industry will also join other members in this one-day protest," confirms the Tamil Film Producers' Council (TFPC) president S A Chandrasekharan.
The FFI is of the view that for the past 10 years, only 7-8 per cent of the films from all over India have been successful but the government, carried away by the collections of hits like Bodyguard, feels the film industry is making huge profits. But the success rate in the industry has been declining year after year. "The film industry is already burdened with the entertainment tax and VAT being levied by several states. Unfortunately, producers, distributors and exhibitors cannot pass on the service tax to the consumer since all the state governments have put a cap on the rates of admission in theatres," said a press release.
L Suresh, honorary secretary of the South Indian Film Chamber of Commerce (SIFCC), adds that while the one-day strike will be a "token protest", the film bodies will be deciding on further plans to make their plea heard by the government.

A still from Mankatha