Licence fee hiked to Rs 12,500 per cinema

By MSM Desai
The Maharasthra government’s policy to earn more revenue appears to be to tax the weaker sections. The cinema exhibition sector, which has been crying itself hoarse about the exhorbitant electricity tariff, entertainment tax, property tax and cable piracy, have now been saddled with an extra levy. As if to add insult to injury, the government has hiked licensing fee from a mere Rs 500 to Rs 12,500. In its gazette notification dated July 4, which calls for objections from the trade before July 31, was received only on October 5 by most cinemas in the state and trade bodies like the Theatre Owners Association and Cinematograph Exhibitors Association of India.

Shocked by the notification, the CEAI chief, Gunwantrai Desai has written to the chief minister and principal secretary (special) protesting the arbitrary increase by 25 per cent in all three categories.

“The cinema exhibition sector is already riddled with problems especially in the form of competition from other avenues of entertainment.Thus cinema owners are burdened with various other taxes including property tax and high incidence of electricity tariff. Any addition to these levies, will be injurious to the trade. Therefore we have requested the chief minister to maintain status quo ante,” he said.

The prominent exhibitor and owner of New Vijay, Natraj and Nandi theatres, said that the government was pushing cinema owners to the brink of extinction.

“First of all, it has sent us the notification too late, long after the date for lodging complaints had expired. Besides, the hike is also arbitray, as cinema owners were not consulted before the notifications were issued. The 25 per cent hike is too steep for cinemas to bear, particularly the smaller ones in rural areas. We understand the government does need to levy taxes, but the hikes should not be so steep as to kill the goose that lays golden egg.

Apart from the state government, the municipalities also levy taxes. Due to rampant cable piracy, attendance at cinemas have fallen by 50 per cent all over, and cinemas are on the verge of closure. To burden us with more taxes now will compound our problems,” he added.

It may be recalled that the annual licence fee was a mere Rs 500. The government has in its new draft notification, has made three categories of taxes.

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