According to a Sify report, the Kerala Government is planning to impose additional tax on other language films screened in the state. Double taxation system currently exists in Tamil Nadu and Karnataka. The State Government in Kerala is said to be considering it as well. The Finance Minister TM Thomas Isaac announced the initiative in the Assembly recently.
The entertainment tax was scrapped last year following a backlash from luminaries in the Malayalam film industry. This time around, the plan is to re-introduce tax only for the other language films. A spokesperson for the Ministry of Finance says that this new move will help Malayalam language films. “In recent years, films from other states have done better business than our own films. This initiative will only help our industry grow,” he said.
Exhibitors in the state are wary of the move. AK Bobby, an official with the Film Exhibitors United Organisation of Kerala, says:
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“We make a lot of profits with Tamil, Telugu films. Stars like Suriya, Allu Arjun plan promotional meets in Kerala as well, as these days they have a huge fanbase here. Without taking into account these facts, the Ministry has come up with this move. Our industry is in a crisis, yes. But this move will only cause more damage. It wont save us.”
A spokesperson for the Tamilnadu Film Producers’ Council said that they were closely monitoring the situation in Kerala. “We cannot speak about it until we know if the decision to impose tax is final. At present, it is only in the initial stages,” he said.