The tax structure for the entertainment and media industry will be overhauled in the 2008-09 Budget to help it attain global standards, information and broadcasting (I&B) minister Priya Ranjan Dasmunsi said on Wednesday.
Addressing a seminar on media and entertainment, Focus 2007, organised by Assocham, the minister said that he was negotiating with the finance minister to give tax rebates to the film and entertainment industry, based on recommendations of various groups set up to suggest changes in taxation.
Dasmunsi also said that strict measures will be introduced to curb piracy so that the sector does not suffer revenue losses, which currently is estimated to be between 25-30%.
The minister said a group set up by the I&B ministry on piracy prevention had already given its recommendations. Measures to tackle the problem would be announced by early 2008.
Groups set up for revenue generation, digitalisation and overall exchange programmes have also submitted their recommendations, which would be discussed in great details with all stakeholders in next few days, he said.
He also announced that the ministry would convene a meeting of all relevant stakeholders in Mumbai in next few weeks and finalise the agenda for bringing about structural changes in the sector so that in next few years, the industry grows to a size of over Rs 75,000 crore.
Dasmunsi also said his ministry would be signing a MoU with the UK on material sourcing and other relevant stuff for film making of global standards. The government had already signed such MoU at bilateral levels with Germany and Italy, the minister added.
To help produce films at lower cost and make those accessible to viewers at the national and regional levels, he advocated the need for removing shakles of control and regulation on the industry.
Earlier speaking on the occasion, civil aviation minister Praful Patel urged for reduced taxation so that films are not only viewed at cheaper costs but also produced at much competitive rates. He lamented that the government took more than a decade to accord industry status to the sector, and promised that the Centre would be more liberal towards the industry now.