28% GST could play villain for Konkani film industry

It’s no secret that people produce Konkani films more out their love for the language and the culture than with the intention of becoming rich. But as far as revenue goes, Konkani movies don’t even earn a fraction of what a Salman Khan blockbuster would generate.

Karan Sehgal | MAY 26, 2017, 04:46 AM IST

PANAJI

In fact, producers of Konkani movies always struggle to recover their costs. In such a scenario, filmmakers fear that the 28 per cent Goods and Services Tax (GST) rate announced for cinema might just kill Konkani films altogether.  
Laxmikant Shetgaonkar, director of movies like Baga Beach, said, “The makers of Konkani movies will not be able to pay 28 per cent GST. We don’t have the kind of footfall which a Bollywood film usually enjoys. We have to maintain the tickets at an affordable rate inorder to have a reasonable kind of footfall.” 
As it is, only a handful of Konkani movies are made in a year. In a bad year, 3 to 4 Konkani movies are released in a year, while in a good year, 7 to 8 such movies get released. 
Shetgaonkar continued, “The economics of my film can’t be compared to a Salman Khan movie. But, under GST, both are being taxed at 28% rate.”  
As of now, if a Konkani movie is being screened at a commercial theatre like INOX, a 25 per cent entertainment tax as well as services tax of 10 per cent is levied. However, producers of Konkani movies end up getting the entertainment tax waived off from the state government. If a Konkani movie is screened at a Ravindra Bhavan or any other government auditorium, only services tax is levied, which is the case with most Konkani films in Goa.  
This is the reason why tickets of Konkani movies are priced anywhere between Rs 100 and Rs 150, which is affordable to many. All this is set to change when GST comes into picture.   
Konkani movie-makers will be left with two bad choices – to increase the ticket price which could drive away the audience, or to absorb the increase in tax which will in turn eat into their profits.   
Rajesh R Pednekar, producer of national award-winning Konkani film K Sera Sera - Ghodpachem Ghoddtelem, said, “As of now, the state government ends up offering a rebate on entertainment tax. But with GST, we don’t know if the state government will be in position to extend this benefit.”  
Pednekar continued, “We will not be able to price a Konkani movie ticket at Rs 250 to recover the hike in tax. However, Bollywood producers wouldn’t be affected because people will come to watch their films even if they increase the ticket rate.”  
The increase in GST rate is being proposed at a time when Konkani films have got no support from the government in the last six years under the film finance scheme. This scheme was revived last year, but no Konkani film till date has benefited from it .  
It’s clear that the support for regional cinema is waning in Goa. In such a situation, Konkani movies will not be in position to bear the burden of 28% GST.   

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