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No strike after all!

Lata Khubchandani in Bombay

Today, representatives of the film industry met with Maharashtra chief minister Vilasrao Deshmukh to formally protest against the four per cent sales tax mooted by the state government. It was a meeting that left the industry rather hopeful.

Pahlaj Nihalani, the official spokesperson and president, All India Motion Picture Producers' Association, says cheerfully, "It was very positive. The CM promised us they would do their best for the industry and, till they cannot control cable piracy and other such infringements, they will not impose any more taxes on the industry. But the government needs money too. So they will form a committee under the presidentship of the (state) finance minister and representatives of the industry to guide the government on how revenue can be collected from the industry without burdening it too much."

While the government is clear that additional revenue is required from the entertainment industry, the proposed sales tax has now been put on hold after today's talks. The chief grouse of the industry has been the 85,000 video parlours mushrooming across the country as against the 14,000 theatres. This eats majorly into the profits of the film industry and the government seems to have recognised the legitimacy of their complaint.

"At the moment," says Nihalani, "we've got temporary relief but we hope it will be permanent. We have suggested that if the government is able to control piracy, that will automatically earn them more entertainment tax because more people will go to the theatres. That's the main avenue for better revenue really.

"It has also been proved time and again that, when the government reduces entertainment tax, they become recipients of better revenue. This is a time-honoured fact. It's been proved not once, not twice, but many times.

"Again, today, the number of cinema goers has increased considerably but, because of the piracy and the taxation, revenue is not increasing. If our laws are more streamlined, the government will automatically earn more revenue. Illegal video parlours have increased considerably and they pay no license fees or copyright amounts or entertainment taxes, so everyone loses revenue. Action taken against these people will be a major source of revenue for the industry and the government.

"These video parlours are channelised through unofficial sources and are like permanent cinema halls with stereophonic sounds, etc. And these indirect sources are making money. At the same time, the government and the film industry are losing out on this revenue."

The film industry, which was scheduled to meet this afternoon to discuss their next course of action, cancelled the meeting after the chief minister's positive response.

Photographs: Jewella C Miranda

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