Tax breaks and other sops should be extended by the government to the entertainment industry to make it globally competitive, according to the Ficci entertainment committee.
The current tax structure is not in favour of the industry and the government should set up a committee to review the current excise duty and the entertainment tax structure, Yash Chopra, chairman FICCI entertainment committee, said today while tabling a 10-point agenda of the convention at Frames 2003, the global convention on the business of entertainment.
He said the Union Budget has hardly touched the entertainment industry and, hence, there is a need to educate the policy makers about the potential of the sector.
"In order to make the industry globally competitive, a right kind of policy framework is of utmost importance. Also, this has been a difficult year for the industry in terms of survival. The commerce and infrastructure constraints should be done away with to ensure a steady growth," Chopra said.
The Centre should also take steps towards expediting the co-production treaties with other countries and to work closely with the outside world, there should be measures taken towards enhancing speedy approvals, Chopra added.
As a prerequisite for substantial industry growth, piracy control measures should come into existence with an emphasis on proper legislative framework on the issue.
The ongoing controversy over the conditional access system should be made to reach a logical conclusion without delay.
The duty on import of equipment by the broadcasters should be rationalised to enable the cost components to be under control.
Chopra said that despite a steady growth, the sector has not been successful in attracting funds at low interest rates.
Post privatisation of the FM radio bands, the Centre should consider the revenue sharing model to help the private players stay afloat. A market development fund should also be put in place.
Ravi Shankar Prasad, union minister for information and broadcasting in his inaugural address said, "There is a need for the Indian entertainment industry to start thinking big. The FDI regime for the film industry is the most liberal one. As far as the entertainment tax is concerned, the maximum limit is being capped at 60 per cent. Co-production is necessary for the industry to acquire a global status and measure towards this direction is being taken."
"The ministry has set up a committee to examine the existing regulation on piracy and accordingly legislative measures would be put in place," he said.
"To attract global attention, first, we should put our own house in place. The industry should tune in to the present competitive business environment and some degree of corporate governance should be infused into the sector," the minister said.