Tollywood film-makers get Jaitley assurance on GST slabs

Hyderabad: IT minister K.T. Rama Rao on Thursday met Union finance minister Arun Jaitley in Delhi  regarding the effect of GST on regional cinema. Film producers D. Suresh Babu, Burugupalli Sivaramakrishna and C. Kalyan, representing the film industry, explained to the Union minister how regional cinema would be affected by a common GST.

“We met KTR sometime back and informed him that Telugu cinema might be affected if there was a single tax for the entire state. He asked us to meet the Union finance minister. I told him that we had not been able to get an appointment. He then fixed today’s appointment,” said Suresh Babu from Delhi.

He said that Jaitley responded positively. “I informed him that Hindi and English movies were viewed across India, whereas regional cinemas were confined to their particular regions. So regional and national cinema could not be put in the same bracket,” added Suresh Babu.

“I informed the minister that Telugu cinema was surviving because of state government support in different forms like subsidies or tax exemption. If they put all cinemas on one platform, the fabric of the country loses its charm because of Hindi or English cinema,” he said.

Jaitley assured the delegation that he would look into the matter. Cinema hasn’t been put under any slab yet and the government might put one slab for national cinema and another for regional films.

At present each state taxes the entertainment industry differently and the local industry usually benefits. If GST comes in, everything will come under one tax bracket and the regional industry will be affected.

“Either the state or the Centre has to protect the local film industry, and the minister was positive about it,” Suresh Babu said, thanking Mr Rama Rao.
“It’s not only for Telugu as it represents the entire regional cinema,” said Suresh Babu. Another meeting will be held with the finance minister late December or mid-January on the GST issue.