The Indian Motion Picture Producers’ Association (IMPPA) on Wednesday wrote a letter to Finance Minister Nirmala Sitharaman, requesting her to abolish or “considerably cut back” GST on the film and leisure industry to assist revive the sector amid the pandemic.
The association, in its letter addressed to the FM, requested Sitharaman to take into account “the ache and agony” the industry goes via due to “excessive taxation and in addition GST being levied at 18 per cent”.
The IMPPA claimed that the GST (items and providers tax) is levied at a particularly excessive price, particularly when that is an industry the place the federal government makes no funding however “takes away the lion’s share within the earnings generated”.
“Therefore in such an industry, the place your complete capital is being contributed by the entrepreneurs, and at present at a stage the place the industry has reached a useless finish due to the pandemic, it has change into obligatory that new blood and power be pumped into the industry… By method of abolishing GST and all different taxes as a one-time measure to revive the industry,” the letter learn.
The association, which has almost 6,000 members, ?mentioned the federal government has given “large tax exemption and subsidy” to quite a few multiplexes and exhibition shops, which solely rely on the sale of tickets and struggled through the closure of cinema halls due to the pandemic.
“It is a enterprise which solely runs on the earnings generated by sale of tickets, which additionally will get offered provided that the film appeals to the general public sufficient to encourage them to pay cash and purchase tickets.
“Therefore if the industry is to survive it wants movies and the federal government ought to instantly take obligatory steps to abolish or considerably cut back GST on the M&E industry.”
Cinema halls throughout the nation have been shut for many a part of 2020 due to the coronavirus-induced nationwide lockdown.
The exhibition sector noticed a phased opening following the second wave of the pandemic earlier this yr.
The letter, signed by IMPPA president T P Aggarwal, noticed that producers are nonetheless dealing with a extreme monetary disaster, whereas the central and state governments make “large earnings out of varied taxes imposed at nearly all ranges of film manufacturing”.
“It is excessive time that the federal government supplies instant monetary in addition to leisure reduction to the poor residents of the nation by both abolishing GST on the Film and Entertainment industry.
“Or not less than cut back it to the bottom degree of 5 per cent everywhere in the nation in a very uniform method which might be extremely appreciated by the industry,” it learn.
(Only the headline and film of this report could have been reworked by the Business Standard workers; the remainder of the content material is auto-generated from a syndicated feed.)