Mollywood's financial crisis: Producers demand an end to dual taxation
What's the story
The Malayalam film industry is currently grappling with financial challenges.
In response, producers and distributors have urged the Kerala government to eliminate dual taxation and regulate high actor fees.
These demands were reiterated during a stakeholders' meeting in Kochi on Saturday (September 7), as part of discussions on formulating a new film policy for the state.
The meeting was chaired by filmmaker Shaji N Karun, who is leading the committee drafting this policy.
Financial burdens
'Producers are on the streets now...'
During the meeting, producers expressed concerns about dual taxation.
They highlighted that in addition to the Goods and Services Tax (GST) levied on ticket revenues, they are also required to pay an additional entertainment tax.
G Suresh Kumar, vice president of the Kerala Film Producers Association, told On Manorama that this is creating unsustainable financial pressure on film producers.
He emphasized that producers are "on the streets now," and have been pushing for relief from the state government.
Salary concerns
Calls for regulation of actor salaries amid financial strain
Another critical issue raised during the meeting was the excessive remuneration being demanded by leading actors, which further exacerbated financial strain.
Producers reportedly called for measures to regulate actor salaries, as high fees have become a major hurdle for many productions.
Distributors also raised concerns over inconsistent rates for affixing film posters across local bodies and sought a standardized system.
Policy formulation
Kerala government to finalize new film policy soon
The Kerala government is expected to finalize its new film policy soon, addressing at least 25 key areas of the industry.
The meeting addressed a wide range of issues, including film financing, theater construction, and labor concerns.
However, Shaji N Karun noted that the ongoing controversies stemming from sexual allegations in Mollywood, post the Hema Committee report, were not discussed during these discussions.