Filmmakers in Tamil Nadu have appealed to the finance ministry to scale back the tax deducted at supply (TDS) for movies, saying that over 120 movies with investments of over Rs 1,000 crore are caught within the Tamil movie trade alone. and are unable to launch in theatres. Due to the Covid-19 induced lockdown.
According to the Tamil Film Active Producers Association, levying 10 per cent TDS on distribution of cinematographic movies is a “huge setback” and can have an effect on lakhs of individuals related to the movie trade. In a letter to Finance Minister Nirmala Sitharaman, CII Media and Entertainment (South) TG Thiagarajan mentioned the Indian movie trade is going through a decline of round 60 per cent, and it wants the ministry’s help to revive the pandemic. is.
“Any drastic change in tax rates like TDS to 10 per cent will shut down the film industry, affecting lakhs of people associated with the industry,” mentioned Thiagarajan, treasurer of the Tamil Film Active Producers Association. Noting that the TDS on royalty regarding cinematographic movies was two per cent until March 2020 and was later lowered to 1.5 per cent through the pandemic, he mentioned, “Suddenly 10 per cent TDS shall be levied for FY 2021-22. Huge burden on the producers who’re already in large loss.”
He mentioned that from January 2021 the trade slowly began to revive and earlier than it may begin strolling on its toes, the second lockdown imposed by numerous state governments badly affected the movie trade. “Today hundreds of films are stuck, not releasing in theatres, and unable to recover their investment,” he mentioned.
He identified {that a} research performed by commerce physique Federation of Indian Chambers of Commerce and Industry (FICCI) and consultancy agency Ernst & Young, launched in March 2021, confirmed a 40 per cent decline within the “film entertainment segment” to Rs 7,200 crore. Rs. 11,900 crore in 2019 to 2020.
“With the ongoing outbreak, it (turnover) may drop by another 25 per cent and touch the turnover level of around Rs 5,000 crore, which means the industry has declined by 60 per cent in the last two years,” he mentioned. mentioned.
“On behalf of TFAPA, we appeal to you to reconsider the decision to levy 10 per cent TDS on royalty relating to cinematographic films and restore it at the same level of two per cent till the film industry is revived,” he mentioned within the letter.
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With inputs from TheIndianEXPRESS
