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Strike!!

Lata Khubchandani

The Maharashtra government's imminent imposition of four per cent sales tax on the film industry has riled the Bollywood biggies who feel they're already paying huge amounts of money to the government. The industry has now threatened to go on strike in protest against this unfair levy.

This, if it happens, will close down theatres in the city and cancel shooting, causing huge losses to Bollywood producers. Besides, it will also affect the release of some big films like Refugee, Josh etc.

When Venus, the producers of Josh when contacted, were busy with the logistics of the release. They seemed unconcerned about the impending strike.

Neither was J P Dutta, whose much-awaited Refugee (starring Abhishek Bachchan and Kareena Kapoor) is scheduled to release this month. "I've been so busy with the post production work of the film that nothing has registered yet," he said. "I've heard about the strike, of course, but I can't comment because nothing concrete has been decided yet."

Pahlaj Nihalani, president, All India Motion Picture Producers' Association, says, "No, we are not going on strike just yet. We have a meeting scheduled with the chief minister at 1 o'clock on June 5; we shall decide on the next course of action after seeing his reaction. The whole industry is meeting in the afternoon on the same day to decide what to do next."

What if the CM is adamant?

'We are hopeful. In 1986 also, there was a similar imposition of sales tax. But it did not affect the industry so badly then. Today, the entire industry will be penalised by the sales tax. During the earlier strike, the Godbole commission was set up and there was no more tax levied on the film industry.

"Today, the government is saying it has a soft corner for the industry -- they want to give many relaxations. Then this kind of tax will be an imposition. No other state has imposed any tax on the film industry. There are already many taxes like entertainment tax, octroi, excise duty on raw stock, custom duty etc. Now after completing the film if we have to pay yet another tax, after we've paid so many while making a film, then it'll be completely unfair. How can it be justified?

"There is only one entertainment in India -- no other kind of entertainment is so popular. If such a burden is placed on this industry how can it be considered okay?

"We are hoping that the government will understand our problem but, if they do not, then we will have no other alternative but to go on strike. In 1986, they understood our problem and set up a commission, the chief secretary of which was Godbole. We then approached the central government -- a report was prepared that the entertainment industry should not be taxed and they understood.

Some time ago the Uttar Pradesh government had imposed a tax, but we made them understand and they removed it. Now, again, Maharashtra has started this all over again after a gap of 14 years -- a veritable vanvas and we are trying to make them see how unfair it is."

What happened to the industry status to the film industry that was announced a couple of years ago by Sushma Swaraj?

"That was only sweet talk given to the industry by the government," says an angry Nihalani. "Nothing has been done -- no progress has been made, no notification has come from the government. Banks are willing to finance the industry, even insurance companies are willing to insure films but they're waiting for some formal notification from the government.

"Only the UP government has declared that they've given notification to this effect, they've also reduced the electricity tariff and other things for the industry. But, until the Maharashtra government and the central government takes out some notification, it will not benefit the industry.

"There is no progress on the industry status -- in fact, instead of concessions, we're getting more taxes levied on us. Many things have to be rectified -- like water tariff, electricity tariff -- but nothing has come through despite assurances by the government."

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