As the Telangana Bill was cleared by the Lok Sabha, Film Buffs have been in a dilemma over how much the Telangana statehood would affect the Telugu Film Industry as both the regions will be having separate official film bodies from now.
Trade Experts say, Nothing else gonna change except for the Tax Systems in both the new states. May be, Producers will have no other option but to pay Entertainment Tax to both the states if at all they wish to screen the film in Telangana and Seemandhra.
In fact, the big threat for Tollywood is the Dubbed/Non-Telugu films not the Direct Telugu films and the Low Entertainment tax levied by AP Government on such films is the reason behind such situation.
Entertainment Tax on Dubbed/Non-Local films:
Andhra Pradesh - 16.6-20%.
Tamilnadu - 30%.
Karnataa - 23%.
Kerala - 25%.
Tamilnadu Government collect 30% Entertainment Tax for Direct Tamil films. Sadly, AP Government allows these Tamil dubbed films to release in AP with less than 20% Entertainment Tax. It's high time Government has to wake up to cut down this huge gap, instead of considering a hike on Telugu films!
Trade Experts say, Nothing else gonna change except for the Tax Systems in both the new states. May be, Producers will have no other option but to pay Entertainment Tax to both the states if at all they wish to screen the film in Telangana and Seemandhra.
In fact, the big threat for Tollywood is the Dubbed/Non-Telugu films not the Direct Telugu films and the Low Entertainment tax levied by AP Government on such films is the reason behind such situation.
Entertainment Tax on Dubbed/Non-Local films:
Andhra Pradesh - 16.6-20%.
Tamilnadu - 30%.
Karnataa - 23%.
Kerala - 25%.
Tamilnadu Government collect 30% Entertainment Tax for Direct Tamil films. Sadly, AP Government allows these Tamil dubbed films to release in AP with less than 20% Entertainment Tax. It's high time Government has to wake up to cut down this huge gap, instead of considering a hike on Telugu films!