Kerala gives sops to film industry

Thiruvananthapuram, Aug 4 (IANS): The Kerala government Wednesday decided to make a significant reduction in entertainment tax and to take serious action against video piracy.

The decisions were in keeping with demands raised by the Malayalam film industry since the A.K. Antony government took office three years ago.

The cabinet decided to lower entertainment tax from 48 percent to 20 percent.

"We also decided to ask the central government to declare the film sector as an industry," Antony told reporters.

"The 'show tax' collected from every theatre has been taken off and we have agreed to increase theatre service charge on every movie ticket from Re.1 to Rs.2."

The rate of entertainment tax levied in Kerala was one of the highest in the country and the film industry had for long been demanding lowering of taxes.

John Muthoot, a film exhibitor, welcomed the government's decisions.

"Though some of our demands have been met, we are hopeful the government will look into our other grievances too," Muthoot told IANS.

"The increase of service charge will do a world of good for the upkeep and maintenance of theatres."

One demand that is yet to be looked into is reducing electricity charges that are among the highest for theatres in the country.

Due to a severe crisis, close to 300 theatres have closed down in the last four years. The number of new films released too has fallen from 150 a year in the 1990s to a mere 50 a year now.