Kannada Film Producers Threaten To Move Out Over GST

With Goods and Services Tax (GST) set to be incorporated by all the states from July 1, Kannada film industry is threatening to move out of Karnataka. Earlier, there was no entertainment tax on Kannada flicks, if they shot 50 percent of the movie and post-production was done in the state. But now, fix 18 percent entertainment tax will be levied.

"It now seems inevitable for film activity to be taken out of the state", said President of the Karnataka Film Chamber of Commerce (KFCC) Sa Ra Govindu. On the same Babu added, "When there is no tax benefit, there should be no restrictions".

A taxation expert and chartered accountant, Vivek Mallya shared his view and said that Kannada film producers will now use extravagant sets prepared for Hindi, Tamil or Telugu flicks. X  Many are still hoping state government to intervene and bail-out the producers, as July approaches. 

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Source: grouponcdn.com