The Hindu Business Line : Kerala Govt announces sops for film sector

THE State Government has announced a relief package for the crisis-ridden film sector, which includes reduction in entertainment tax and scrapping of the show tax.

Announcing this after a meeting of the State Cabinet, the Chief Minister, Mr A.K. Antony, told newspersons here that the recommendations made by a Cabinet Sub-Committee to this effect had been approved.

The State Government has also decided to approach the Centre with a request to declare cinema as an industry.

The new entertainment tax regime applicable for Malayalam language films will be as follows: 25 per cent in city corporation areas, 20 per cent in municipal areas and 15 per cent in panchayat areas. For other language films the respective rates will be 35 per cent, 30 per cent and 20 per cent. The ruling rates hover around 48 per cent.

The Cabinet also decided to bring in legislation to prevent production and distribution of pirated film CDs and videos. Service tax to be paid by theatres would be revised upwards to Rs 2, the Chief Minister said.

SEZ in Ernakulam: The Cabinet has decided to give its concurrence to the four main conditions stipulated by the Centre that would facilitate the declaration of the Vallarpadam-Puthuvypeen area as a Special Economic Zone (SEZ).

According to Mr Antony, companies investing in the zone would now be spared from paying up stamp duty, registration fee, power duty and local taxes charged by the local administration. The departments of tax, electricity and local administration had been directed to issue notifications to this effect.

The Development Commissioner of the zone would have the powers equivalent to those of the Labour Commissioner while settling labour disputes being reported from the zone.

Admission quagmire: The recent interim order delivered by the Supreme Court with respect to the Kerala Self-Financing Professional Colleges Act had engendered a difficult situation where the State Government was left with not many options to proceed, according to the Chief Minister.

In any case, the Government was trying to exhaust all legal and other options to end the predicament of students with regard to admission and fee structure in these colleges, he added.

The Centre had already been approached with a request for assistance in getting the Kerala Self-Financing Professional Colleges (Prohibition of capitation fees and procedure for admission and fixation of fees) Act incorporated in the Ninth Schedule of the Constitution. The Chief Minister said he had written separately to the Prime Minister and the Union Home Minister in this regard.

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