KERALA GOVERNMENT’S DIWALI GIFT TO FILM INDUSTRY | 4 November, 2021

The Kerala government has given major reliefs to cinema owners in the state. It has decided to waive entertainment tax levied on film tickets, retrospectively from April 1, 2021, to December 31, 2021. This was decided at a meeting called by chief minister Pinarayi Vijayan recently to discuss the issues faced by cinema owners after the lockdown. The state has also waived 50% in the fixed electricity charges. Theatre owners will be allowed to pay the remaining amount in six instalments.

Another sop is the waiver of the building tax of cinemas which were completely closed down during the COVID-19 lockdowns. To avail of this facility, cinema owners will be required to submit applications to the respective local bodies, declaring the period for which they were shut. Although cinemas in the state are currently allowed to operate at 50% capacity only, the regulations have now been relaxed to permit even those vaccinated with just the first dose, to gain entry into the cinemas. The increase in capacity of cinemas will be considered shortly.

The state also decided to convene a state-level bankers’ meeting to explore the possibility of providing a moratorium on loans taken by cinema owners and cinema entrepreneurs. Shootings have been allowed to be restarted after adhering to the general COVID protocols.

The meeting, chaired by the CM, asked the finance department to look into the possibility of providing a financial package to cinemas of Kerala as part of footing the initial expense required for reopening cinemas. The Kerala State Electricity Board has been asked to look into the grievances of cinema owners with regard to the additional power tariff charged.