GST effect on Tollywood industry

Hyderabad, May 20: The recently finalized GST (Goods & Services Tax) system has turned out to be a massive blow to Tollywood. We have already reported that the central government has fixed a uniform tax rate of 28 percent on cinema halls across the country.

Knowing that people of the Telugu states are avid movie buffs, the state governments had earlier charged 12 percent tax from cinema halls. With the current massive hike in tax (to 28 percent) advocated by the GST, the ticket rates will go up drastically and common man may stay away from movie watching experience in theaters.

On the other hand, the central govt. is boasting of having eased the tax on films. It is partly correct as the tax on Hollywood and Bollywood films will come down from the existing 37-38 percent to 28.

South and other regional films, which used to pay around 15-16 percent tax, will now have to shell out 28 percent. This is nothing but looting money from non-Hindi film industries.



The govt. should have considered the vast difference between the taxes levied on Hindi (37-38) and non-Hindi (15-16) films before fixing a uniform tax of 28 percent. It is the time the big wigs of Southern film industries collectively raise their voice against the bias shown via GST.