More movies, more masti and more opportunities

State government announces sops for Andhra Pradesh film industry

The state government's recent announcements including the decision to put a full stop to the two-decade-old slab system on entertainment tax has come as a breath of fresh air both to the film industry and the movie buffs, for reasons more than one.

For one, the 440 theatres out of the 2,500-odd theatres that were closed in the last few years due to the slab system would be re-opened, and would eventually open new doors to the small and medium-budget producers who were systematically excluded from production.

For the uninitiated, the regime of collecting entertainment tax, popularly known as slab system, on the basis of the total number of seats in a theatre was introduced by late NT Rama Rao, renowned Telugu actor and the then chief minister of Andhra Pradesh, in 1993, in a bid to put an end to the practices of evading entertainment tax by understating the number of tickets sold.

This, however, proved futile with many small exhibitors finding it difficult to run movies. This also resulted in closing down of some theatres.

Following years of negotiations between the film industry and the state government, the YS Rajasekhara Reddy-led government has recently decided to remove the slab system.

With this decision, entertainment tax will now be collected in accordance with the tickets sold in theatres under the jurisdiction of municipal corporations, selection grade, special grade and first grade municipalities.

However, the government on Sunday said that it would soon evolve a transparent system to check any possible evasion of entertainment tax by the exhibitors.

As per the new measure, the entertainment tax rates are fixed at 15 per cent on high-budget movies (with more than 35 prints) and 7 per cent on low-budget movies. Dubbed movies and films produced outside the state and films of other languages would be charged at 20 per cent.

These new rates would be applicable for all such films which are registered with the Andhra Pradesh State Film, TV and Theatre Development Corporation Limited (APSFTVTDCL) and produced and released in Andhra Pradesh. According to sources, this would cost the state exchequer close to Rs 15 crore.

Welcoming the government's decision, noted Telugu film director Siva Nageswara Rao said: "The new measure underlines the state government's commitment to a stable, sustainable and successful film industry. The decision is good news for the entire Telugu film fraternity as it would bring in new opportunities to directors and many producers would come forward to produce movies. Earlier, only high-budget movies with big star cast could sustain in the old regime. For instance, my recent movie Sailaja Krishnamurthy was screened at the Odeon Theatre in Hyderabad for only 60 days. Had there been no slab system, the movie could have celebrated 100 days. Now things will change with the new tax system and more movies would be churned out, thereby providing more employment."

Apart from this, the state government has given permission to the exhibitors to increase the theatre maintenance charge to Rs 2 from the existing Re 1 in AC theatres, and from 50 paise to Re 1 in non-AC theatres. Will this mean that the theatres would henceforth offer better facilities to movie buffs?

"Not necessarily," said JN Chowdhary, president of the Federation of AP Cine Exhibitors Association. "Though the government has permitted the exhibitors to increase the maintenance charge, improving the existing facilities at the theatres would be left to the discretion of the theatre managements," he said.

The government has also announced a single window system for sanction of permission for film shootings. Categorisation of locations will be finalised by APSFTVTDCL in consultation with the departments concerned.

APSFTVTDCL will now issue shooting permissions for category 1, category 2 and category 3 locations as single window authority. As per the new charges, shootings at locations under the first category will be charged Rs 15,000, second category Rs 10,000 and third category Rs 5,000.

Besides, the number of upper class seats will be reduced by 30 per cent and there will be more seats in the lower categories. There's good news for film-goers too. The government has also decided to reduce the admission rate by 30 per cent.

It has fixed a Rs 40-bar on tickets rates, and from now onwards, Rs 40, Rs 35 and Rs 25 will be charged for air-conditioned, air-cooled and ordinary theatres respectively in municipal corporation areas while Rs 30, Rs 25 and Rs 20 would be charged in the selection grade and special grade municipalities.