Planning to go for a tax-free film in Noida? Wait at least a week after announcement

Do you belong to the category of moviegoers who feel overjoyed after a film is made tax free and queue up outside the box office the very next day? But, if you are are planning to go watch the tax-free movie in Noida or Ghaziabad, then you should wait at least a week or 10 days after the announcement, because that is the amount of time the UP government requires to implement the tax-free status of any film.
Recently, viewers who made a beeline for Noida theatres for Bajrangi Bhaijaan tickets after the film got a rebate, had to return disappointed because the cinemas had not received the notification for a week.
READ: Salman Khan's 'Bajrangi Bhaijaan': The making
What takes so long?
The cinema owners tells us that it is not the first time when revised rates could not be implemented for a week after a film was declared tax free. When Mary Kom was made tax free last year in UP, not just the government, but theatres also gave the excuse that because of the UP Assembly bypolls, cinema halls had to wait for the letter from the State Election Commission giving permission to make the film tax-free. But then it happened with PK also, and now again with Bajrangi Bhaijaan.
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Why Delhi has very few tax exemptions
Application for tax exemption can be given only 14-15 days after the film’s release in Delhi. Our guidelines are strict, unlike UP’s ‘purely conditional’ terms. When we get a request, we check the criteria, after which the organiser screens the film for our review committee. Then, we send the recommendations of the committee to the government officials who take the decision. The film also needs to meet a certain criteria to be considered for tax exemption – An entertainment tax official from Delhi.
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Cinema insiders reveal, “After the government announces tax exemption in UP, the notification takes time to reach the theatres and by the time it does reach, the weekend arrives. Since theatres don’t want to lose the weekend profit, they implement the cheaper rates from the next week. Phir tax free hone ka 10-15% profit hota hai, kyunki tab tak sab ne film dekh li hoti hai, but if it’s a blockbuster then it’s different.”
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SP Pandey, joint commissioner, entertainment tax, was quoted as saying, “The exemption on entertainment tax is purely conditional. This means that the producers and distributors get a specific concession on each film. The distributors submit a list of cinema halls where entertainment tax-free film can be screened, which is then sent to the district authorities and also to the department officials.” While the government officials say it’s the formalities that take most of the time, distributors say that the sooner it is implemented, the better.
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Joginder Mahajan, a distributor, says, “Tax exemptions are one of the reasons cinema hall profits are higher in UP as compared to Delhi. It’s true that the process is so long that by the time a film is actually made tax free, almost everyone would have seen the film. But why would we delay the process from our end?” But UPwallahs should be thankful that at least they get exemptions on some films, unlike in Delhi, where an exemption application can be submitted only 14 days after a film’s release.
UP has long list of tax exempted films, not Delhi
When we spoke to the entertainment tax officials in Delhi and asked them why UP had a long list of tax exempted films but not the capital, an official told us, “Application for tax exemption can be given only 14-15 days after the film’s release in Delhi. Our guidelines are strict, unlike UP’s ‘purely conditional’ terms. When we get a request, we check the criteria, after which the organiser screens the film for our review committee. The review committee consists of the entertainment tax commissioner, a finance department representative, a social welfare department representative and a journalist. Then, we send the recommendations of the committee to the government officials who take the decision.”
He added, “Besides, a film can only be considered for tax exemption when it meets a certain criteria – a film which highlights government policies/programmes, is about the lives of national heroes/freedom fighters, exhibits the freedom movement of India, depicts exemplary conduct which could be emulated by others or depicts social emancipation, especially of the downtrodden or women. The grant of exemption will be considered only on the recommendation of the review committee.” However, an application for a film was denied recently without any meeting because ‘it didn’t look like it belonged to the tax exemption category’. On the other hand, in UP, as a distributor puts it, ‘Sab CM saheb ki kripa hai.’
Tax-free tag attracts viewers
Cinema reps say a tax-free status makes films more accessible at cheaper rates, which means more footfalls. Mukesh Bhatt, president, National Guild of Producers, says, “We applaud the UP government’s decisions on tax exemptions. It makes films affordable and when a film becomes tax free, it has more box office collections. The UP government has provided tax exemptions a number of times, which is a healthy sign for the growth of our industry in the state. But, in Delhi, rather than waiving taxes, the government is increasing them, which is a serious issue.”
Tax free films in UP in Past two years
Bajrangi Bhaijaan
Humari Adhuri Kahani
PK
Mary Kom
Mardani
Katiyabaaz (documentary)
Tevar
Bhaag Milkha Bhaag
Hawaizaada
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WATCH: 'Bajrangi Bhaijaan' Made Tax-free in UP