Regional films a taxing issue for civic body

MUMBAI: After the brouhaha over providing tax benefits to Bhojpuri films along with other regional language movies, the civic administration on Tuesday withdrew the proposal under the pretext that it needed to study what other cosmopolitan cities were doing in case of regional cinemas.

“There is a need to study what is the provision for regional languages in other cosmopolitan cities and what the financial implications of such a proposal will be,” municipal commissioner Jairaj Phatak said.

The opposition, however, did not buy the commissioner’s argument. “It looks as if the commissioner is withdrawing the proposal under the political pressure,” Rajhans Singh, Congress leader said.

The BMC at present provides exemption on theatre tax to Marathi and Gujarati films, dramas, tamashas and one-man drama shows. In the standing committee meeting on January 23, keeping in mind 25 % voters from North India, Singh had suggested an amendment to exempt even Bhojpuri theatres from paying tax. The commissioner had later brought another proposal asking for exmeption of all regional language films from paying the tax.
 
To this, Sunil Prabhu of the Shiv Sena had asked for a study of the policy of other governments on the revenue implications of the proposal. The corporation earned Rs52 lakh as tax in 2006-07 and Rs58 lakh in 2007-08 up to February.

“BMC has a budget of Rs16,000 crore. It can do away with Rs58 lakh, which is a small amount.” Congress leader Sameer Desai said.

s_ashutosh@dnaindia.net