We have heard of Single Screen theatres shutting shops in lieu of hike in Entertainment Tax and other governmental issues and even multiplexes. But the news that has come in is sure to send stars and their plans in frenzy.
Film Federation Of India (FFI) has called a nationwide shutdown of the film industry on February 23rd 2012 to protest on the service tax regulation for film-making which in case implemented would increase film-making costs.
The period of the strike if for a day or indefinite is still unclear.
The Central Government has proposed a Service Tax of 10.3 percent. This seems to be a rather huge number and would escalate film costs considerably. Whether the Film Producer’s Guild who is not part of the FFI joins still remains a mystery.
Mabdhur Bhandarkar and Mahesh Bhatt both disapprove of the ploy by the government and say that they are displeased with the government’s decision to take such a strong step.
Whislt Madhur adds that the budget for his upcoming film Heroine starring Kareena Kapoor has been finalised months back not only will the increase inflate his production budget but the strike on 23rd would also delay and things planned would have to be changed which again would incur huge losses, Mahesh Bhatt says the government has always been apathetic to the Indian Film Industry and this new rule would only result in film-makers shutting shops.
However film producer Ratan Jain says a strike would result in losing more money and one needs a fair representation from the film fraternity to represent and discuss the issue with the Finance Ministry.
Whether bandh happens or not, the increased rule if implemented is sure to bring down the record count of movies we make. So Mr. Finance Minister is it not advisable to re-think your decision when the Indian Entertainment Industry is giving you higher revenues?