You are here: Home » News-IANS » Business-Economy
Business Standard

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

IANS  |  Mumbai 

The government's decision to put cinema tickets under the 28 per cent bracket in the Goods and Services (GST) regime is a major setback for the film industry, feels Siddharth Roy Kapur, President of The Film and Television Producers Guild of

"The rate of 28 per cent announced on cinema tickets is a huge setback for the 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 Council on Friday decided a four-slab rate for services. The regime will roll out from July 1.

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

"The average entertainment collected nationally by the across all states and languages was in the range of 8-10 per cent of gross box office revenue. Hence, logically the 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

"The 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 which should be one of the primary forms of cultural outreach from to the rest of the world, finds itself in real danger of coming undone," Kapur said.

--IANS

sas/ag/bg

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, May 20 2017. 18:32 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU