Editorial

Just what the doctor ordered
Years of haranguing before changing governments and uncertain ministers for levy cuts in vital areas of raw material imports has finally yielded some results for the film industry in Yashwant Sinha’s Budget 2000. What is generating great happiness in the filmmaking fraternity is

The dawn of 2000 has opened several entertainment avenues. The synergy that is developing between the knowledge based industry, as the minister has described the IT sector, and the entertainment industry is likely to open new vistas

that all its exhortations in a series of pre-budget talks with the Finance Minister did not fall on deaf ears as it often did in the past. For a change a Finance Minister has emerged with a concern and a long-term vision for the growth of the entertainment industry which is advancing at a brisk pace to attain global equations. If the budget concessions have rightly favoured the production sector in a significant measure it is indicative of the government’s comprehension of the need to encourage producers to take initiatives in the right direction.

In recent years the production figures of Hindi films have been sliding and regular makers have been expressing anxieties about coping with the escalating costs of production. The budget sops should brighten the future for producers at least in as much as availing of raw stock and equipment is concerned. Other problems such as star prices, varying market demands, high admission rates and so on are worries which will not easily leave the producer.

A great worry that is, perhaps, destined to haunt the Hindi industry for a long time to come is the lack of a uniform entertainment tax structure. The state governments have always left the industry perplexed and unhappy in this area despite the fact that instances where tax reduction has yielded increased earnings have been hailed and acknowledged. The demand for scrapping of entertainment tax may never be fulfilled but at least a flat rate as recommended by the Patil Enquiry Commission ought to be considered to free the industry from living with a perpetual nightmare. The state governments, however, have shown no enthusiasm to come together on this issue.

The regional cinemas, no doubt, have been receiving their share of deserving incentives. But the fear that confronts them today is the possibility of withdrawal of subsidies given to filmmakers as grants in aid. The plea to scrap the income tax on subsidies under capital gains has gone unheeded possibly because of the imminent move to scrap subsidies. It was well within the purview of the central budget to pull out the tax on subsidies since it is more than clear that the subsidies are aids and as such do not qualify as capital acquisition.

The dawn of 2000 has opened several entertainment avenues. The synergy that is developing between the knowledge based industry, as the minister has described the IT sector, and the entertainment industry is likely to open new vistas. The crop of new directors and makers in the industry, be it in Mumbai, Chennai or Hyderabad has dreams and visions of a new world.

A director like Rakesh Roshan who is very conscious of quality imported a movie camera worth Rs 1.5 crore for the making of his son’s launch vehicle. And so did Shah Rukh Khan who was very keen that his first production should have gloss and technical merits. The industry is currently being led by such young, dynamic producers and Yashwant Sinha surely has foreseen the direction they are heading for.

Udaya Tara Nayar