As Gujarat gets property tax relief, cine owners push for pan-India fix
Say support is critical for theatres to overcome the financial stress
Recently, the Gujarat government announced a complete waiver of property tax for cinema halls, given the disruption brought on by the second wave of the pandemic. This has led to exhibitors asking for a pan-India solution and relief package.
It has been over 18 months since the revenue cycle of theatres pumped back to life, and waiting for the big screen revival is a costly affair. “The theatre sector is losing around ₹400-500 crore per month. Every state needs to follow what Gujarat has done. It’ll ensure that lakhs of people continue to remain employed and the sector continues to exist,” says exhibitor Akshaye Rathi.
And while the cinema halls in Gujarat have also been exempted from a fixed charge in the electricity bill from April 1, 2021, to March 31, 2022, and a relief package was announced for film theatres in Andhra Pradesh, Maharashtra exhibitors met the state government officials last week to request them to follow Gujarat’s model.
Hoping for theatres to reopen early next month, Kamal Gianchandani, CEO of PVR Pictures and president of The Multiplex Association of India (MAI), asserts, “The first quarter of the financial year, which is 30-33% of the annual business, has been spoiled.”
Adding to it, Kailash Gupta, chief financial officer, INOX Leisure Ltd, says, “Any support in the form of waivers and subsidies will prove to be critical in overcoming the financial stress.”
Furthermore, the exhibition sector is urging the government to charge them for electricity as per the industry rates and not commercial rates. Explaining the math, Devang Sampat, CEO, Cinepolis, points out that there’s a difference of almost 25% between the commercial and industrial rates, and trade expert and producer Girish Johar says it’ll help them save at least 10-20% of the whole cost.
Now, as unlock begins, the industry experts are keeping their fingers crossed, and hoping for people to return to the theatres with several films, such as Bell Bottom, Chehre and Thalaivi, in the pipeline.