WITHDRAW SERVICE TAX
Strong Urge By Industry
Report by CNB                Photos - K.M. VEERESH                             Date - 29th March  2003

There has been sudden development in the Kannada film industry on Saturday afternoon. The reason – Rs. 1 extra tax per ticket. Rs. 1.50 service charge is now Rs. 2.50 per ticket with effect from April 1, 2003. This hike in service charge is the announcement from the Karnataka State Government in its recent budget presentation.

This awareness has alerted the industry especially the Kannada film producers. On Saturday around 150 producers staged a wild protest inside the film chamber and later on a dharna in tentative office in Gandhinagar. Slogan shouting was heard from the producers against KFCC President S. Ramesh, Siddalingaiah and others

After getting no response what so ever the entire band of producers along with film chamber office bearers proceeded to information minister Mr. Kagodu Thimmappa residence. The danger ahead of losing anywhere between Rs. 15 lac to Rs. One crore was explained to the minister an account of hike in service charges.

The producers wanted subsidy to be given to all the films instead of 20 films which is in process now.
 

Information minister addressing the industry people asked them to come unite on their demands. The budget announcement of service charge hike has come from CM behest. The exhibitors claim that they may have to close down theaters if service charge is not hiked informed information minister. On the announcement of lack of unity in the legislative assembly on Friday one of the senior directors Mr. Joe Simon asked the information minister to name the person who is behind this confusion. However the information minister has agreed to put the memorandum before the Chief Minister and will come back soon on the matter within a day or two since the Chief Minister S.M. Krishna might go to Delhi tomorrow.

Mean while some producers told a lobby has taken place in the quality 20 films announced recently. Some of them told the members in the quality control team will call the producers and will ask some money to get their film for subsidy. For this Information minister asked the producers for single evidence against the corruption and he will take action against them.

The producer sector which loses heavily from this service charge hike urged the minister for the cancellation before April 1st. In case that is not happened the major protest will take place.