GST has increased film ticket prices. But the film industry isn’t worried

The hot topic over the last couple of days has been GST — the Goods and Services Tax — which has affected everything, from the price of a cup of coffee to fuel and movie tickets. After the tax revision, film tickets are now in the highest tax slab — 28%; with tickets priced below `100 attracting only 18%. Considering that Kannada films have enjoyed 100% tax exemption form the government for decades, and in light of theatres downing shutters in neighbouring Tamil Nadu over the imposition of the GST, we spoke to filmmakers in Sandalwood to find out if this revision in taxes will see a dip in audiences. And most of them are not worried.PEOPLE WANT ENTERTAINMENT AT ANY COSTFilmmaker SD Arvinda feels that no change has discouraged audiences till date from going to theatres, and the new tax structure will have the same effect. “This move won’t have any impact. At the end of the day, people want entertainment at any cost; it won’t matter even if the tax is 50%. In fact, when the fight was on to reduce ticket prices, moviegoers were not really bothered. There is no way that restaurants and theatres will stop functioning — I don’t think that there is any other reality than this,” he says, which producer Tarun Shivappa agrees with. Tarun says that if a movie is good, then people will definitely watch it in theatres, regardless of the language. “The basic price of tickets for Baahubali 2: The Conclusion was `700, but people across societal groups watched it. Some years ago, the price of Jogayya was increased, but all the shows were sold out. If the movie is good, it won’t have an effect on the collections,” he says.TICKET PRICES NOT MUCH OF A CONCERNProducer Karthik Gowda says that even though GST has been implemented a few days ago, the number of people watching movies hasn’t reduced. This also has to do with the fact that ticket prices in most single-screen theatres is `100 or below. “Apart from a few multiplexes, the ticket prices aren’t going to be much of a concern. Producers and distributors will end up getting a slightly lesser share, but the state has given us a subsidy. Once we pay the taxes and produce a certificate, the State will give us a subsidy based on what we have done. Initially, there will be some confusion and our share will take a hit for sure, but it shouldn’t stop people from going to watch movies. After demonetization, a section of people said that the (film) industry will close down, but nothing happened. What has happened in Tamil Nadu — where the tax is over 60% — is brutal, but here, we are OK,” he says.NEED TO LOOK AT THE OVERALL GOODKarthik and filmmaker Indrajit Lankesh feel that the ‘one nation, one tax’ scheme is good, since there are no hidden taxes. Indrajit chooses to look at this as a layman, and stresses that the GST is good since it will take the tax burden off Karnataka, which was paying some of the highest taxes. “I read that the GST will benefit farmers directly. Fuel prices will reduce, which will bring down costs of other essential goods. So, it is a good move.” Indrajit adds that the film industry has been spoilt by the 100% tax cut, and this move will probably encourage people to churn out better films. “The industry might feel a pinch, since we were the only ones to enjoy 100% tax cuts. We have been spoilt to some extent due to this. How long can we continue to enjoy subsidies? Of course, ticket prices can be unreasonable, but in any case, the price of Kannada film tickets will be lesser than other language films. We have to respect paying taxes and look at the larger picture,” says Indrajit.‘THIS IS NOT A GOOD MOVE FOR THE ENTERTAINMENT INDUSTRY’Although most people in the film industry are undeterred by GST, director Prashant Raj says that it will most certainly have an impact, and he, along with others from Sandalwood, are planning to approach the State and Centre and request them to reconsider. “When a family goes to a multiplex to watch a movie, there are other things to consider apart from the ticket price. There is no control over the food cost, since there is no concept of MRP at multiplexes. On top of that, the prices of tickets are increased. This will not help producers in any way as it will reduce the number of people who will go out to watch movies. Yes, people may watch a Salman Khan or Shah Rukh Khan film at inflated rates for the first three days, but that’s not the duration in which a film makes money. Business depends on the entire middle-class family going to the theatre and watching a movie. Ticket prices shouldn’t become an additional burden on them. Now, they would rather watch TV at home. This is not a good move for the entertainment industry and it has to be reconsidered,” says Prashant. The director adds that meetings have been planned with the associations concerned, who will approach the government soon regarding a request for revision.