Producers to approach K-Town superstars to share their tax burden
After the recent decision by the government to introduce a 30% tax on the DTH, films, IPL and such forms of entertainment in Tamil Nadu, Kollywood film producers are in a major quandary.
This is not expected to impact ticket prices immediately, so the common man will be spared. However, producers will have to make an allowance for 30% in their profit sharing.
Our source says, “Earlier, the profits of the box office were shared equally between the exhibitor and the producer. Now, they have to give the Government a 30% cut.”
Producers are now going to forward a proposal to superstars in the Ajith, Suriya, Vijay league to take a price cut because the recent Government decision is being viewed as the last straw that broke the camel’s back. Says a producer, “We cannot cut costs on hiring film equipment; locations also come with fixed hire charges. The only place where we can hope to cut costs is in the remuneration charged by the top stars and technicians. If they don’t co-operate, many a film producer will find himself buckling under pressure and may even be forced to shut shop. So, producers are definitely going to approach the superstars and celebrity technicians to please take a fee cut and stop us from bleeding.”
After the recent decision by the government to introduce a 30% tax on the DTH, films, IPL and such forms of entertainment in Tamil Nadu, Kollywood film producers are in a major quandary.
This is not expected to impact ticket prices immediately, so the common man will be spared. However, producers will have to make an allowance for 30% in their profit sharing.
Our source says, “Earlier, the profits of the box office were shared equally between the exhibitor and the producer. Now, they have to give the Government a 30% cut.”
Producers are now going to forward a proposal to superstars in the Ajith, Suriya, Vijay league to take a price cut because the recent Government decision is being viewed as the last straw that broke the camel’s back. Says a producer, “We cannot cut costs on hiring film equipment; locations also come with fixed hire charges. The only place where we can hope to cut costs is in the remuneration charged by the top stars and technicians. If they don’t co-operate, many a film producer will find himself buckling under pressure and may even be forced to shut shop. So, producers are definitely going to approach the superstars and celebrity technicians to please take a fee cut and stop us from bleeding.”
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