The Indian Motion Picture Producers Association (IMPPA) on Wednesday wrote a letter to Union Finance Minister Nirmala Sitharaman requesting her to abolish the Goods and Services Tax imposed on the film industry.
New Delhi: The Indian Motion Picture Producers Association (IMPPA) on Wednesday wrote a letter to Union Finance Minister Nirmala Sitharaman requesting her to abolish the Goods and Services Tax imposed on the film industry.
Signed by IMPPA President TP Agarwal, the letter read, “You are requested to kindly consider the pain and suffering that the film industry is going through due to excessive taxation and also GST being levied at 18 per cent which is a very high rate.” But because it is an industry where the government does not make any investment but takes the lion’s share of the income generated and hence in an industry where the entire capital is being contributed by the entrepreneurs and today in a phase where Due to the industry reaching dead end due to pandemic it has become very important and necessary to infuse new blood and strength in the industry by abolishing GST and all other taxes as a one time measure to revive the industry.” The association urged the government to take necessary steps immediately.
“.. because we have to keep in mind that the government has given huge tax exemptions and subsidies to many multiplexes and exhibition outlets, which are lacking in content and without regular flow of films they have to be closed because it is a business that only Runs on the income generated from ticket sales, which are also tickets sold, if the film appeals enough to motivate the public to pay money and buy tickets and therefore needs films if the industry is to survive. And the government should immediately take necessary steps to eliminate or substantially reduce the GST on the M&E industry,” the IMPPA said.
“We are very happy to know that your self has announced a uniform 12 per cent GST rate from January 1, 2022 on MMF, yarn, fabrics instead of the currently prevailing 18 per cent, 12 per cent and 5 per cent, which is in fact Appealing to you to save the film industry from excessive taxation and GST, which is levied at 18 per cent, but at the time of sale the GST collected is only 12 per cent, thereby at higher rates than the finished products. Taxation of inputs leads to creation of credits and accumulation of taxes at various stages of the M&E value chain due to extensive cost and blockage of working capital which is critical for the industry, which is already an exhibition along with the total lockdown of production. is in dire straits due to which there has been serious job loss and financial loss,” the letter concluded.
Cinema halls first closed in March 2020, were allowed to reopen in December, and were then closed again for fear of a second wave of coronavirus.
First published:November 24, 2021, 5:58 pm