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June 2, 1998

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Many concessions to film industry

For the first time since it has been plagued by problems of video piracy and competition from satellite/cable television, the film industry has been given several concessions as a follow-up to the government's decision to recognise it as an industry.

The customs duty on the jumbo rolls of cinematographic film has been reduced to 10 per cent from the present 25 per cent and is bound to give relief to producers purchasing raw stock for their films.

Finance Minister Yashwant Sinha announced in his Budget that if a film is released on commercial basis at least 90 days before the end of the previous year, full amortisation of the cost incurred on production or acquisition of distribution rights of the film will be allowed in the year of release itself. Until now, this limit was 180 days, and no amortisation was allowed if the film was released later.

Sinha said he was keeping in view the fact that film-makers are now required to release a large number of prints of a film to beat video pirates. This leads to a shorter lifespan for exploitation of films, and expressed the hope that the film industry would be able to recoup the cost of film production and distribution.

He also said that producers will now have to give information only about payments over Rs 25,000 in any financial year. Until now, film-makers had to report payments over Rs 5,000.

The minister expressed the hope that these measures would inspire the film industry to make better and healthier films.

He also announced that he was exempting recorded audio and video cassettes from excise duty, but has increased the excise duty on unrecorded audio cassettes by three per cent to 13 per cent.

His concessions were also extended to the print media. Announcing an increase in postal rates, Sinha said he was exempting the tariff on registered newspapers in the interest of the common man and the role of the print media in a democracy.

Budget '98

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