YOU WIN SOME, YOU LOSE SOME!

PEHLAJ NIHALANI (Producer, President, Association of Motion Picture & Television Programme Producers)

It's dynamic, growth-oriented (The following is an extract from Nihalani's telegram to the finance minister after the budget was announced:) CONGRATULATIONS on the dynamic and growth-oriented budget, which, besides leading India to a happier future, will also breathe new life into the dying and doomed film industry. We are extremely grateful that (you) have accepted our request for exemption of recorded

audio and video cassettes from excise duty, reducing period of amortisation to 90 days from 180days, increase in amount to Rs 25,000 under Section 285B of the Income Tax Act and the reduction in customs duty on jumbo rolls of cinematograph films from 25 per cent to 10 per cent. We are sure the reliefs will go a long way in revitalising the film industry..We are confident that (you)will look into our request for allowing deduction of U/S *0 HHC on lease of export for of films, and for solving our problems in recoupment of foreign exchange expenditure in shooting abroad. For the first time in decades, we have a central government which has made an effort to solve the problems of the film industry. For this, we shall be eternally grateful to you.

YASH CHOPRA
(Producer-director)

Just what the doctor ordered! It is a great budget for the film industry. Of course, our biggest demands, that countervailing duty on imported raw films be abolished and that benefits under Section 80 HHC be made available for the film industry, have not been granted. But this government has still brought more blessings to filmdom than other governments. For one, we've finally been granted industry status.

For another raw stock has become cheaper, now that the customs duty on imported jumbo rolls has been reduced from 25 per cent to 10 per cent. What's more, by absolving producers from having to account for all expenses below Rs 25,000, a great deal of our clerical work will henceforth be reduced. We stand to gain from the reduction in the period of amortisation from 180 days to 90, too. But to tell you how much it will benefit producers like me, I shall first have to talk to my chartered accountant.

SAAWAN KUMAR
(Producer-director)

We ought to count our blessings I do wish the government had paid heed to our request that countervailing duty on imported raw stock be done away with altogether. It is an unfair imposition because we're being taxed for importing goods that aren't produced in the country. We did try to bring it to the government's notice, but to no avail. However, we ought to count our blessings, for no other government has had as much goodwill towards

the film industry as the Vajpayee-led dispensation has. There's still reason for hope that our remaining grievances will be redressed too in due course.

SALIM AKHTAR (Producer)

It's alright for a start! On the face of it, it does seem as if the film industry has been shortchanged. Of all our many requests we've been granted just a few. It is like giving a beggar a measly two rupee note. It doesn't add up to much, unless more of our demands are met. Take the cut in customs duty on imported jumbo rolls for instance. Of the thousand-and-one things that go into film making, jumbo rolls are just one of them.

A 15 percent cut on one duty doesn't make a substantial difference to producers. If the government really cared about the film industry, there were more pressing needs that deserved to be looked into. The countervailing duty on raw stock needs to be abolished. The problem of piracy, now that pirated LD copies of the film are being circulated within a week of a film's release, demands a remedy desperately. Good films suffer from piracy, and in the case of bad films, the problem is worse. I'm not too excited about this budget. Although I admit it doesn't seem too bad for a start.

MANMOHAN SHETTY
(Owner, Ad Labs)

The sops are trivial In the guise of helping the film industry, the government has handed out some trivial sops to it. The government has reduced the customes duty on positive raw stock by 15 per cent, but when you compare this with the rising value of the dollar, the difference becomes negligible. Negetive raw stock, on the other hand, will cost more (by 10 per cent), not less. The amortisation period has been reduced to 90 days, of course, but that will benefit only the

distributors, no body else. If you ask me, what the government ought to have done istead, is do away with the overall 8 percent more that is being charged on imported equipment and raw stock.