All sections of the industry - including producers, exhibitors, distributors and artistes - have decided to come together for a day-long bundh. “We are also demanding from the Government complete tax exemption for remake films,” Karnataka Producers’ Association President Sandesh Nagaraj said.
He, however, said that the final decision to hold a bundh has not been taken yet. “We will first meet the Governor on February 13 and request him in this regard. If nothing is done, we will have no other option but to organise a bundh,” he added.
The State Information department, in a recent order, revoked tax exemption given to about eight Kannada movies, including Krishna.
The department, in an order on October 5, 2007, had exempted tax for Krishna, so exhibitors did not collect entertainment tax from the public. But on December 27, the Commissioner of Information issued an order staying tax exemption to the film, on the grounds that the film was a remake. Consequently, officials of the department of Commercial Tax were now asking exhibitors to pay entertainment tax, amounting to Rs 10 to 15 lakh, sources said.
Exhibitors have to pay entertainment tax if they screen remake and non-Kannada films, while there is 100 per cent tax exemption for ‘original,’ Kannada films in the State.