Today is the first budget of Modi Government. It would be a big test for this new government. Will the government, which was formed owing to the overwhelming support of people, surpass the expectations of the Indians who supported him, that’s the big question. At such helm of affair, how the new budget is going to hamper or put an impact on Bollywood is a larger question, we at Justbollywood is posing. As far as the expectations of B Town filmmakers, they are expecting a slash down in tax burden levied on the industry particularly the theatre and studio owners. The film industry in India is also expecting come perks and incentives, which can allow more number of theatres to embark in the country that can play its part in ticket sales.
If you look at the entertainment tax levied on the movie tickets, they differ from state to the other, however, the filmmakers are supposed to pay 12.36 percent of service tax to the Union government along with other fees. If you take the case of Maharasthra, which is the main hub of film industry for having Bollywood in it, the taxes over the movie goes around 61 % of the total budget of the movie. As per the film makers like Kulmeet Makkar (CEO of the Film & TV Producers Guild of India) demands from the government to treat this world fairly rather burdening with so much extra tax merely for being the entertainers.
The Bollywood industry has to be treated unlike the other niche areas in the country is treated. At this juncture, the Bigwigs in the industry expect to see a fair replacement of indirect taxes with Goods and Services Tax and a simplified kind of tax structure. According to Komal Nahta the popular trade analyst, the revenue through Bollywood can boost up by 25 percent provided the entertainment tax goes down. Just wait till the finance minister Mr. Arun Jaitley finally unveils his government’s first union budget.