The Hindu Business Line : TN announces sops for film industry

THE Tamil Nadu Government has announced a package of measures supporting the film industry, including tightening of legislations to prevent piracy and tax concessions and subsidies.

According to an official statement, the Tamil Nadu Chief Minister, Ms Jayalalithaa, said that the Government would amend the Tamil Nadu prevention of dangerous activities of bootleggers, drug offenders, forest offenders, goondas, immoral traffic offenders and slum grabbers Act, 1982 (Tamil Nadu Act of 14 of 1982) to include video pirates.

The Government would also stringently enforce the Copyright Act, 1957 (Act 14 of 1957 - Central Act). This provides for penalties including imprisonment up to three years and a fine of up to Rs 2 lakh.

The video piracy cell would also be strengthened and six more cells would be added to the existing six cells, the statement said.

While ensuring that pirated video films are not exhibited in State-owned transport buses, the private operators have also been given strict instructions to not to exhibit such cassettes.

The Tamil Nadu Exhibition of films on television screen through video cassette recorders and cable television network (Regulation) Act, 1984 (Tamil Nadu Act 7 of 1984) would also be amended to make penalties more stringent including providing for imprisonment up to two years and fine of a minimum of Rs 1 lakh.

Entertainment tax applicable to Municipal Corporation areas and Special Grade Municipalities will be brought down to 15 per cent from 25 per cent of gross payment for new films and 10 per cent for old films, which were earlier subject to 20 per cent. This will also be applicable to permanent and semi-permanent theatres within a radius of 5 km.

In other areas where the tax is levied on a compounding basis per show or week, a simple system of 10 per cent on gross payment would be introduced.

To protect the revenue of the local bodies, which receive 90 per cent of the revenue from entertainment tax, an alternative compensation arrangement will be made, the statement said.

Low budget films with "good themes useful for social mobilisation and propagating good values" will qualify for entertainment tax exemption.

Cinemas can now collect maintenance charges of 50 paise for non-air conditioned halls and Re 1 for air-conditioned ones.

The Government has granted three-year exemption from sales tax on lease transactions of outdoor units, equipment hirers, studios, laboratories, recording theatres, audio, video and satellite rights, which now attract 12 per cent. It has also decided to withdraw penal action to recover sales tax on such leases.

Rates for shooting films in various locations have also been slashed. For Category-I locations such as colleges, sanctuaries and Kodaikanal and Ooty lakes the charge will be cut to Rs 10,000 a day from Rs 50,000, and for shooting at Rajaji Hall (in Chennai) the fee will be Rs 25,000 against Rs 1 lakh charged earlier.

For Category-II locations, which include other public places, the charge will be Rs 5,000 a day against Rs 25,000.

The State Government has also decided to grant a subsidy of Rs 7 lakh to low-budget films with a maximum of 25 prints and length of up to 3,000 metres. To be introduced with effect from 2003, the scheme will be implemented at an annual cost of Rs 2 crore, the statement said.