Low budget films may get exemption

Saturday, February 24, 2018

Andhra Pradesh State Film, Television and Theatre Development Corporation Chairman P.V.V.P.Krishna Rao today said the Corporation proposed to exempt tax and provide subsidy to small budget Telugu films.

Speaking at a press conference, he said that towards encouraging small budget movies worth below Rs.4 crore a proposal of complete tax exemption and Rs.10 lakh subsidy to the producers was made recently. However, such movies should be entirely shot in the State and promote the State. The proposal is before the Chief Minister, he said.

He extended support to the strike call given by the South Indian producers, distributors and exhibitors in protest against the monopoly of two Digital Service Providers that distribute digital film content to screens. From March 2, all the exhibitors will stop using DSPs, that, stop screening new movies demanding reduction in Virtual Print Fee, he said.

‘On behalf of the government because, the two DSPs, Qube and UFO, have been reluctant to screen the government publicity films along with the feature films. On the other hand the monopoly of these companies on which distributors and exhibitors are heavily dependent at present has hit the industry’, he said. The DSPs are now charging VPF of Rs.27,000 per regional movie which is exorbitant. Besides, they screen advertisements for 20 minutes and the exhibitor gets no share in the revenue. On the other hand charges for Hollywood movies are nominal, he added. There are about 2,000 screens dependent on the DSPs in the State.

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