FICCI suggests 10-point formula for reviving multiplex industry

New Delhi, Sept 2 (UNI) Taking note of a burdensome tax regime for the country's multiplex segment, industry chamber FICCI today called for a 10-point formula for reviving it, which contributes 70 per cent of all film revenues.

A highly burdensome tax regime along with archaic laws governing regulation of cinema, pose a serious challenge to the multiplex industry, leading to closure of the theatres and shutting out investment in multiplexes, the chamber said.

''Standardisation and modernisation of cinema regulations under a Central Uniform Cinema Code should to be applicable across the country, while removing all pricing restrictions, will help the industry,'' it said.

Despite the fact that the highest number of films in the world are made in India, the country is also among the highest 'entertainment-taxed'. The average entertainment tax rates lie between between 10 per cent to 15 per cent.

''All states should permit computerised ticketing, and digital distribution and exhibition should be specifically allowed in the proposed new Cinema Code,'' the chamber said.

To mitigate concerns of adverse revenue impact on state finances, the tax reduction may be done in phases over next three years while the taxes paid on costs incurred should be allowed to be set-off against taxes collected on revenues, the chamber added.

India is amongst the highly 'under-screened' countries in the world, where only about 12 screens per million are available, in comparison to the US, which has about 117 screens per million.

''There is thus an estimated shortfall of about 40,000 screens in the country,'' FICCI said.

''Most states prescribe cinema building criteria through 'Cinema Regulations' and also prescribe cinema building criteria in local development bye-laws like location, FSI, ground coverage, seat layouts, viewing angles, safety, parking, etc. These criteria are different in different states, making it difficult for a national chain to create a uniform design across the country,'' it said.

The process of obtaining a Cinema License also become tedious, at times involving more than 40 different sub-permissions and in most states, the licenses are issued by the Police Commissionerate (in non-corporation areas, by District Magistrates).

For curbing piracy, the chamber suggested digital exhibition and improved logistics and economics of distribution of cinema content.

Ficci said more profits should be allowed that will in turn help renovation/upgradation of the theatres, leading to higher occupancies, thus further boosting viability. This will bring in more investment by the business and corporate interest will bring in transparency and professional management skills.

Removal of restriction on number of film shows and the freedom to operate any number of shows between 8 am and 1.30 am, is also among the recommendations.

Simplification and standardisation of all laws governing the sector, licensing to be granted under a 'single-window' clearance concept and entertainment taxes to be capped to 16 per cent across the country are some of the recommendations.

UNI