The Gujarat film industry is like a house divided. While producers and distributors are up in arms against the “very high” Rs. 25 tax-free service charge per ticket allowed by the state government to cinemas for the upkeep and maintenance of cinemas, exhibitors are demanding a further hike of Rs. 10 in the same.
Just recently, film producers and distributors of Gujarat wrote to the government, requesting it to reduce the tax-free service charge permitted to exhibitors. It may be noted that no other state government allows cinemas to charge such a high amount per ticket towards service charge. Since exhibitors in Gujarat can legally deduct Rs. 25 per seat from the net collections to calculate the distributor’s share, producers and distributors are at a loss because the sharing with exhibitors is done after Rs. 25 per ticket is retained cent per cent by the exhibitors. But the strange part is that The Multiplex Association of Gujarat on 23rd July wrote to the state finance minister, asking it to revise the service charge from Rs. 25 to Rs. 35 per ticket. A similar letter had been written last month too.
It would be interesting to see what stance the government will take in this matter — will it reduce the service charge, as demanded by producers and distributors, or will it increase the charge, as desired by the exhibitors? Or will it simply maintain status quo?