Movies

Kannada film fraternity mulls production halt over subsidies, ent tax issues

BANGALORE: The Kannada film fraternity has threatened to call for a stoppage of all production work starting 28 February 2008 over the entertainment tax on remakes and subsidies issues. However, there are no plans to stop screening of films as yet.

Earlier, the industry withdrew its call for a statewide strike that was to be held on 14 February, after talks with government officials who assured them that the entertainment tax issue would be looked into during the state‘s budget. The industry is also demanding benefits for Kannada film remakes.


The Kannada film industry is much smaller than the film industries of neighbouring Andhra Pradesh and Tamil Nadu. The annual investments in Kannada films are about Rs 2 billion - about one fifth of the investment in the Telugu and Tamil film industry.


Last year, 98 Kannada films, including remakes, were made. To protect original Kannada films, since 1966, the state government has been granting entertainment tax exemptions, besides which original Kannada films are also eligible for subsidies and awards.


Annually, the state government spends around Rs 35 million towards subsidies. The subsidies are offered to 30 films, the maximum subsidy amount being Rs one million per movie, besides which two children‘s films per year are granted subsidies of Rs 2.5 million each.


At present, exhibitors in Karnataka have to pay entertainment tax (40 per cent of the cost of the tickets sold) for screening of remakes and non-Kannada films. According to reports, last year, the state government collected around Rs 560 million towards entertainment tax from exhibitors of remakes and non-Kannada films.

In the case of a Kannada hit film Krishna, in October 2007, the government had exempted it from the payment of entertainment tax, since the producer had declared it as an original movie.. Consequently, the exhibitors did not collect any tax while screening this film.


However, some time ago, a Tamil film producer approached the Tamil Film Chamber alleging that Krishna was a remake of his Tamil film Unnai Ninnathen. Hence, towards the end of December 2007, the Karnataka commissioner of information issued an order staying the entertainment tax exemption given to Krishna and seven other Kannada films. The officials of the commercial tax department have been pressing the exhibitors of these films to pay entertainment taxes that they have not collected – this amounts to between Rs 1 million to Rs 1.5 million, according to industry sources.


The Kannada film industry is undecided on whether offering of sops to remakes will be a positive or a retrograde step. Some industry pundits feel that all Kannada films should be exempt from entertainment tax, irrespective of the fact that a film is an original Kannada one or a remake. Others feel that only original Kannada films should be exempted from entertainment tax to help creative directors without resources take up filmmaking.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/13/movies.jpg?itok=5Msg9GJA
Theatres seek govt aid for re-opening; film producers observe global footfall trends

Social distancing might continue to be the norm even when lockdowns are lifted completely. Theatre owners around the country are in planning mode to resume business as soon as the government gives permission.

Movies Hindi
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/02/ficci.jpg?itok=lLkH6MMq
Multiplex Association of India expresses displeasure over decision to keep cinemas, multiplexes shut in Unlock 2.0

MUMBAI: On 1 June the government of India entered into unlocking by phases. As per Unlock 2.0 guidelines, offices, high streets, markets and shopping malls, airlines are opened but there is no relief for multiplexes. It continues to be included in the prohibited activities list. Today, Multiplex...

Movies Hindi
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/01/lionsgate.jpg?itok=GEJ7bPFb
Lionsgate Play Premiers 47 Meters Down:Uncaged in English, Hindi, Tamil and Telegu

47 Meters Down: Uncaged is a 2019 American-British survival horror film directed by Johannes Roberts and written by Roberts and Ernest Riera and a sequel to the 2017 hit 47 Meters Down. The plot follows a group of teenage girls who scuba dive to a ruined underwater city, quickly learn they have...

Movies Hindi
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/06/30/laurence.jpg?itok=RSHb8DgB
Series Mania announces official dates for 2021 and launches three new initiatives

MUMBAI: Series Mania founder and general director Laurence Herszberg today announced the confirmed dates for Series Mania’s 2021 edition.  Set to take place in Lille, France and the Hauts-de-France region, the Series Mania Festival is set for 19 to 27 March and the Series Mania Forum, to be held in...

Movies International
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/06/23/golden.jpg?itok=IvaKKUHq
Golden Globes postponed to 28 February 2021

MUMBAI: Due to the Covid2019 pandemic, the 2021 Golden Globes will now take place on 28 February instead of its usual slot. This happens about eight weeks before the 93th Academy Awards. The Hollywood Foreign Press Association said this in a statement. Last week, the Academy of Motion Picture Arts...

Movies Hollywood
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/06/23/UFO%20Moviez.jpg?itok=XUQP0zSc
UFO Moviez reports ad rev of Rs 302 mn in Q4-FY20

MUMBAI: UFO Moviez, an in-cinema advertising platform, announced its financial results for the quarter and year ended 31 March 2020. Financial Highlights: Quarter ended 31 March 2020  Consolidated revenue stood at Rs 1,094 (Q4FY19 – Rs 1,939) million.  EBITDA stood at Rs 275 (Q4FY19 – Rs 656)...

Movies Hindi
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/06/23/Prakash-Javadekar.jpg?itok=EKSLGZU4
I&B minister Prakash Javadekar inaugurates Virtual India Pavilion at Cannes Film Market 2020

Minister of information and broadcasting, Prakash Javadekar inaugurated the India Pavilion at the Cannes Film Market 2020 virtually. The pavilion showcases Indian cinema across linguistic, cultural and regional spheres and aims at forging an increasing number of international partnerships in...

Movies International
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/06/17/film.jpg?itok=2aJO25Kw
Film Companion brings together experts and enters the education industry

MUMBAI: Have you been dreaming of pursuing a career in film, but have been groping in the dark as you are clueless about what to do and how to do? You are confused because there are so many institutions that offer multiple courses. But how to check their authenticity and credibility is the...

Movies Movies On Mutiple Platforms
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/06/15/box.jpg?itok=Fcc_0AtW
Cinemas stare at empty halls, slow recovery post Covid2019

The movie industry has found itself cornered for the first time in history. Cinema halls stayed shuttered since March and it might take a while for the footfall to get back to normal. Meanwhile, business revenue has come to a grinding halt and producers are keen on releasing films on OTT platforms.

Movies Hindi

Sign up for our Newsletter

subscribe for latest stories

* indicates required