‘GST is a strain...’
The overall economics of filmmaking and is also discouraging cinema-going habit, says filmmaker Siddharth Roy Kapur
The Goods and Services Tax (GST), implemented by the central government from mid2017, has proved to be a strain on the overall economics of filmmaking and is also discouraging the public’s cinema-going habit, says Film and Television Producers Guild of India President Siddharth Roy Kapur.
A strain on filmmaking
How did GST impact Bollywood’s business in 2017? “It’s still early to say as far as GST goes, but it definitely is a strain on the overall economics of filmmaking because of the fact that there isn’t a complete pass-through for the set-off, due to differential tax rates at various stages of the value chain. Secondly, because of the tax of 28 per cent on cinema tickets above Rs 100, which comprises the bulk of the cinema tickets sold in the country, the cinema going habit is being discouraged. This really does put a massive strain on the economics of film-making,” Kapur said.
Tickets below Rs 100 attract GST of 18 per cent. “We hope that the government recognises the contribution of Indian cinema... in driving the soft power of the nation, something which can actually propel us into the cultural fabric of the globe, and incentivises the industry accordingly,” he added. The game-changer
As a producer who is now making movies under his banner Roy Kapur Films (RKF), he finds the Hindi-dubbed version of southern fantasy drama Baahubali has been a game-changer. There has been a slump in profitable Bollywood originals and the answer, Kapur said, lies in “better stories and better scripts”. “We really need to be able to focus on great writing. From great writing will come great movies.”
Riding on star power
What about the fate of films that ride on star power? “Star power is something that has always existed and will continue to exist, but the fact is that no star can guarantee a long run for a film. If the star is in a film that the audiences are not used to watching them in, the opening might be lower, but ironically that film might go on to do even better business if the film is good. Correspondingly, if the star is in a typical film that stars are expected to be in, it might open huge; but if the film is not good it will finally peter out. So, stars can get you that guaranteed opening in genres that they are known and loved for, but they can’t ensure the longevity of the run of the film. That’s the magic of cinema.”
A busy year ahead
At RKF, Kapur is looking forward to producing a biopic on astronaut Rakesh Sharma, as well as Nitesh Tiwari’s next film based on the bestseller How I Braved Anu Aunty and Co-Founded a
Million Dollar Company. There’s R.S. Prasanna’s next, which is currently in the writing stage, and a film based on the true story of Vijendra Singh Rathore – the heroic Alwar-based truck driver who found his wife after a 19-month-long search in the aftermath of the Uttarakhand flash floods.
Kapur is also backing director Vinil Mathew and writer Sudip Sharma’s next dramatic thriller inspired by the true story of merchant navy officer Audumbar Bhoi, whose ship and crew were attacked by Somalian pirates.
Going digital
Apart from producing films, RKF will also venture into digital media to produce original video content. “We look forward to how the digital medium interfaces with the creative community and what emerges from that because it’s a very exciting time for content creators.”