MUMBAI: In its move to lure film production from Hollywood and other countries, Mexico has launched a $20-million tax-incentive programme.

Mexican President Felipe Calderon made the announcement at Baja Studios in the state of Baja California where James Cameron's Titanic and Peter Weir's Master and Commander: Far Side of the World were shot.

He hoped that the programme would make Mexico "the capital of Latin American cinema.

Remarked ProMexico's head of strategy and innovation Manuel Sandoval, "The message is that there is a 17.5 per cent rebate for foreign productions.

The programme offers tax rebates of 7.5 per cent on film productions that exceed the 70 million pesos ($5.5 million). By Mexican standards, where the average budget runs about $2 million, the offer is considered a high-budget production.
To qualify, foreign producers must contract local production services. Producers also can write off an additional 10 per cent IVA, Mexico's value-added tax.

The fund will double next year to $40 million.