Many concessions to film industry
For the first time since it has been plagued
by problems of video piracy and competition from satellite/cable television,
the film industry has been given several concessions as a follow-up
to the government's decision to recognise it as an industry.
The customs duty on the jumbo rolls of cinematographic film has
been reduced to 10 per cent from the present 25 per cent and is
bound to give relief to producers purchasing raw stock for their
films.
Finance Minister Yashwant Sinha announced in his Budget that if
a film is released on commercial basis at least 90 days before
the end of the previous year, full amortisation of the cost incurred
on production or acquisition of distribution rights of the film will
be allowed in the year of release itself. Until now, this limit was
180 days, and no amortisation was allowed if the film was released
later.
Sinha said he was keeping in view the fact that film-makers are
now required to release a large number of prints of a film to beat
video pirates. This leads to a shorter lifespan for exploitation of
films, and expressed the hope that the film industry would be able
to recoup the cost of film production and distribution.
He also said that producers will now have to give
information only about payments over Rs 25,000 in any financial
year. Until now, film-makers had to report payments over Rs 5,000.
The minister expressed the hope that these measures would
inspire the film industry to make better and healthier films.
He also announced that he was exempting recorded audio and video cassettes from excise duty, but has increased the excise duty on unrecorded audio cassettes by three per cent to 13 per cent.
His concessions were also extended to the print media.
Announcing an increase in postal rates, Sinha said he was exempting the tariff on registered newspapers in the interest of the common man and the role of the print media in a democracy.
Budget '98
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