State govt may reimburse GST on movie tickets to help Kannada film industry

Chief Minister Siddaramaiah on Monday stated that the government planned to reimburse taxes collected on cinema tickets to help the Kannada film industry after the implementation of Goods and Services Tax (GST) on July 1.

After tabling the Karnataka Goods and Services Tax (GST) Bill, 2017, in the Legislative Council, Siddaramaiah said the GST Council had decided to tax 18% on tickets costing Rs 100 and 28% on tickets costing over Rs 100. At present, the Kannada film industry is exempted from entertainment tax.

The move will push up cinema ticket prices. Despite tax-free benefits, the Kannada film industry has been struggling. Therefore, the government was thinking of reimbursing taxes on tickets.

Jayamala Ramachandra (Cong) pointed out that the decision to tax films at 18% would hit small-time producers and those making award-winning films. Reacting to her concerns, Siddaramaiah expressed his government’s commitment to the welfare of the Kannada film industry. Cutting across party lines, Council members appreciated Agriculture Minister Krishna Byre Gowda for effectively representing the state in the GST council.

It was by chance Siddaramaiah chose Krishna Byre Gowda to represent the state in the GST council. “After attending the GST council meetings for about one-and-half-years, PWD Minister Mahadevappa expressed his inability to attend the meetings anymore. I directed Krishna Byre Gowda to replace Mahadevappa. He told me that he did not understand finance and GST. I told him that it was an opportunity to learn,” Siddaramaiah recalled.

“As finance minister, I now have two competitors — Mahadevappa and Krishna Byre Gowda,” Siddaramaiah said, triggering laughter.
DH News Service

Council passes Karnataka GST Bill
The Legislative Council on Monday unanimously passed the Karnataka Goods and Services Tax (GST) Bill 2017 by voice vote after heated arguments over the new tax regime. Chief Minister Siddaramaiah credited the rolling out of GST to the then Union Finance Minister P Chidambaram.

“Chidambaram, in his budget in 2006, had mentioned about the GST rollout in 2010. The UPA’s decision was opposed by many states, including Gujarat. The NDA government is now rolling out what the UPA government had conceived,” he said. Leader of the Opposition K S Eshwarappa strongly objected to Siddaramaiah’s views and said the chief minister was politicising the issue.

Basanagouda R Patil (Ind) said the then Gujarat Chief Minister Narendra Modi was among those who had opposed GST stating that it had many flaws.
The Legislative Assembly has already passed the bill.