1.
Piracy – law are in place but lack implementation
a.
Cable Network is a
haven for pirates
b.
Cable Network licensing
policy has to be addressed
c.
CD/DVD duplication or
replication plants must declare their production capacities. From their
production reports you will find that the production not even 30 per cent of
the declared capacity. The undeclared
production constitutes piracy. Their
balance sheets will indicate that.
d.
Video Parlors are
another area, which should be looked into.
We have repeatedly represented to the Government on this menace, which
is showing movies without procuring any rights. Every time we are told that they are all licensed by the state
governments. The industry should not be
allowed to suffer with this arrangement between Center and the States. Video Parlors will show only legally
procured movies should be the condition of the License.
Example: a
licensed liquor shop cannot sell illegal liquor; if they do they will be
punished as per the law.
e.
There is Excise
on Music CDs when there is not such tax on Computer Software CDs. How can a legal copyright owner of the music
compete pirates with the tax structure?
Pirates neither pay taxes nor rightful royalty to the owner. Because of this rampant piracy the music
business is totally dead.
2.
Rationalization of
Entertainment Tax – Industry suffers
through the argument given to us “It is a State matter”. Industry needs to have a fair environment to
conduct its business and worry about the mechanics of how the Government at the
center or state is related. The spirit
of laws is defeated with such arguments.
Government should build bridges not walls.
3.
Import Duties on
Actual User Equipment: Enable the
industry to compete the World Market.
The entertainment industry around the western world is looking at us to
use our talent and take advantage of the competitive price structure we can
offer in the fields of animation, computer graphics, and special effects. New Zealand has attracted major production
houses from the world to come and work there for their postproduction work
because they were able to put the infrastructure in place.
4.
Consultative
Committee of I & B Ministry: To guide and advise the Ministers,
Consultative Committee are set up under various ministries. At present, no such consultative committee
has been set up under the I & B Ministry.
It should be set up immediately to enable the ministry to examine the
various issues concerning the film industry.
5.
Cine Workers’
Welfare Cess: Each producer of Hindi
films is required to pay Rs.20,000/- and the Regional Producers Rs.10,000/-
towards Cine Workers’ Welfare Cess, at the time of censoring the film. When the Cess was introduced, the Cess rate
was Rs.1,000/- and the same was increased to Rs.2,000/- in 1994. This
exorbitant increase in the rate of Cess has added burden to the film producers
who are already confronted with too many problems. The matter may, therefore, be taken up with the Union Labour
Ministry to withdraw the Cess.