KOLKATA:
Already deep in the red, Bengal’s tinsel town is set to fade
into darkness with a goods and services tax of 28 per cent approved for
admission to cinema theatres, a sharp hike from the earlier rate.
Until now, regional films were levied an entertainment
tax of 2 per cent in the state, while Hindi and English films were
taxed at 30 per cent. The steep increase in the regional category will
especially hurt singlescreen theatre halls, which thrive mostly on
Bengali movies. "We anticipate a 50 per cent shrinkage in viewership in
the GST era," said producer Ashok Dhanuka.
The Bengali film industry suffered a loss of almost Rs 200 crore in
2016-17. "A 14-time increase in taxes paid is unheard of," said Arijit
Dutta, managing director at single-screen chain Priya Entertainment. The
industry, especially those who still bank on Bengali films, is heading
towards a disaster with exhibitors having to shell out 28 per cent of
the gross revenue from the box office to the government, according to
Dutta.
On average, a single-screen theatre makes close to
Rs 120,000 a month. After July 1, when GST is expected to be implemented
nationally, it will have to cough up Rs 33,600 a month as against Rs
2,400 paid currently.
Some theatres may decide to increase the base price of tickets, although that may reduce footfalls, experts said.
"The footfalls to Bengali cinemas are on the wane. A hike in ticket
prices will leave the halls empty," Dutta said. The condition of
singlescreen theatres is deplorable in West Bengal. About 20 single-screen theatres shut shop last year alone because of the cash crunch.
"The number of singlescreen halls has come down to 250 in Bengal from
over a thousand in the last five years," said Krishna Daga, chairman of
the producers’ section at the East India Motion Pictures Association.
With Bollywood and Hollywood luring away most film lovers, exhibitors
are left with little choice. Moreover, producers have been shying away
from investing in the Bengali industry on thinning returns.
"Half the producers are backing out from producing Bengali films
because there has been no profit and with more single screens shutting
down, hardly anybody would be willing to put in money in the industry,"
Dhanuka said.
27 May 2017, 12:36 PM