New Delhi: The Film Exhibition Industry of the country needs tax incentives in the form of a tax holiday period, lower tax rates and subsidies among others to achieve its potential and for its higher penetration into the Tier-II and Tier-III cities, according to the Federation of Indian Chambers of Commerce and Industry (FICCI).
In its budget recommendation, the movie theatre industry body has said that although India is the world’s largest producer of movies, its film exhibition industry is largely untapped.
“While there has been de-growth in screen-counts in India over the past few years, China has recorded phenomenal growth which can partly be attributed to a lower tax rate.
“Tax incentives in the form of tax holiday period, lower rates, weighted deductions, subsidies etc for the film exhibition industry (for instance similar to the one in Section 80HHF of the Income Tax Act 1961 which has been discontinued) be provided, in order to increase penetration of the exhibition industry in Tier 2 and 3 cities,” FICCI’s recommendation said.
It has further sought clarity over the the definition of “royalty” pertaining to sale, distribution or exhibition of cinematographic films. (IANS)
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