Tamil Nadu cuts taxes, filming in bio-reserves cheaper

Chennai, Sep 27 (IANS): Tamil Nadu Monday announced a host of concessions for the state's film industry, including lower entertainment tax and reduced rates for filming in bio-reserves.

Chief Minister J. Jayalalitha made the announcement following a Sep 23 representation from the film industry.

The entertainment tax, currently 25 percent for new films and 20 percent for old films in urban areas, will now be reduced to 15 percent and 10 percent respectively, a statement from the chief minister's office said.

A flat 10 percent entertainment tax will replace the present complex compounding system in rural areas, the chief minister said.

Low budget films will be exempted from entertainment tax.

The rates for shooting films in places like colleges, Kodaikanal and Udhagamandalam and wildlife sanctuaries will be reduced from Rs.50,000 per day to Rs.10,000.

In other places, it will be reduced to Rs.5,000 from the present Rs.25,000.

"Levy of sales tax on lease of equipment used for shooting is being withdrawn for three years," she said.

Video piracy will be brought under the purview of the Goondas Act.

The chief minister, a former actress herself, said in her statement: "Video piracy is disturbing public order and causing loss of revenue to the government. Organised groups of anti-social elements use the proceeds from pirated videos to fund other anti-social activities."

She also said the Copyright Act will be implemented strictly so that video pirates can be sentenced from six months to two years imprisonment, along with a fine ranging from Rs.50,000 to Rs.200,000.