State government is planning to levy the VAT (Value Added Tax) issued on prints made for the film. This new system may affect the film industry drastically - opined the President of APFCC, K.S.Rama Rao.
Speaking to the press on Wednesday at his office he said, "Presently, the situation in the film industry is not quite encouraging. The viewers are not willing to see average films made on shoe string budgets. Every year, about 90 percent of the movies made are incurring huge losses. The producers who are investing are not able to recover the loss."
He added, 'The decision made by the government to levy VAT on movie prints, ignoring the above facts is not appropriate at all. Various taxes are being paid to government for movies already, it is not right to increase the burden. The decision to collect the said tax for the earlier 2007 releases is gruesome and inane. Our chief-minister has responded encouragingly towards such issues earlier, but in this case he has not given his words yet. We are expecting the government to study the situation and reconsider the VAT issue." Telugu Film News
Responding to the earlier comments of Allu Aravind suggesting for relaxing rules, he said, " Hindi and Telugu industries are different. We need to strictly follow certain rules here. Our organizations are always open to receive suggestions which are beneficial. Telugu industry today is a model for other industries in providing health insurance and housing schemes for the producers. We are providing equally opportunity to all the movies for promotional activities."
Relating to percentage issue, some of the producers aren't clear about the concept. During a meeting on 27th last month, producers and distributors together have arrived at a decision. The rental and percentage will be in accordance with the producer but the possession of theatres will not be provided for anyone. Any issues pertaining to this may be addressed to the trade council."
Source: Indiaglitz
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