The first Union budget under NaMo’s government will be out today. Will B-townies be happy?
Narendra Modi got a great support from Indians and he came to power. But will he be equally supportive to the ones who brought him to power? Finance Minister Arun Jaitley will soon be revealing everything about the Union Budget 2014. So how will it affect Bollywood? Well, Bollywood is hoping the new budget will reduce tax burden on movie studios and theatre owners. The Indian film industry is also hoping that the budget will provide some incentives so that more theatres come up, thus increasing the sales of tickets.
The entertainment tax on movie tickets differs in each state. However, filmmakers have to pay 12.36 percent service tax to the central government and several other fees. Reportedly, in Maharashtra, the heart of Bollywood, the taxes on a movie sum up to 61 percent of a film’s budget.
Kulmeet Makkar, CEO of the Film & TV Producers Guild of India Ltd was quoted by a daily, “You need to treat us fairly, not penalise us because you feel we are just entertainers. We want to be treated at par with any other service industry.” Makkar hopes that most of the indirect taxes are replaced by a Goods and Services Tax and the tax structure is simplified.
Trade analyst Komal Nahta states that the industry’s revenue would increase by 25 percent if entertainment tax was to be rolled back.
Well, stay tuned to find out if the Union Budget 2014 lives up to the expectations of Bollywood.