Karnataka: Cinema theaters get property tax waiver for one year

Bengaluru: After Gujarat waived property tax and fixed electricity charges for some sectors for one year, Karnataka government on Wednesday decided to offer similar relief to single screen theatres across the State for 2021-22. The government's move will provide some relief to the owners of single screen theatres reeling under financial crisis, due to lockdown.

Since the outbreak of coronavirus, theatres remained shut for over 14 months. Against this backdrop, Sandalwood did not release any new movies in recent days. Exhibitors are reluctant to screen films in single screen theatres, as the impasse over revenue sharing with producers remains unsolved. By the time business appeared to be returning to normal, Covid-19 cases continued to surge and the government once again decided to shut theatres in March which was a major blow for stakeholders.

On Tuesday, a committee from Karnataka Film Chamber of Commerce (KFCC) met Chief Minister B S Yediyurappa and requested him to grant permission for theatres to operate to full capacity. The government is yet to make an official announcement regarding opening theatres.

According to the reports, there are around 589 plus single screens in Karnataka, whereas in Tamil Nadu there are 2,100, in Andhra Pradesh and Telangana there are around 2,150 and in Kerala around 1,950. The Karnataka Film Exhibitors Federation claims that the number of small screens across Karnataka is declining because of exploitation by producers and distributors who demand heavy advances, huge, non refundable advance, minimum guarantee and rental charges.

As per the theaters owners demand, if a particular film's net income is 75 percent to 100 percent, 35 percent will be given to exhibitors and 65 percent to producers (distributors). If income is between 50-74 per cent, 45 per cent should be given to exhibitors and 55 per cent to producers. If the revenue falls between the range of 30-49 per cent, 70 per cent will be given to exhibitors and 30 per cent to producers and if it is between 1-29 per cent, 80 per cent must be given to exhibitors and 20 per cent to producers.