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Vol. 4 :: No. 2 February,
2002 (Magh
- Falgun)
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Entertainment
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Entertainment |
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Kollywood Under the Tax Net By Ananta Wagle The decision of the government to bring the entertainment industry into the tax net has created unrest among those involved in the Nepali cinema industry. Previously unlike in other fields, no individual concerned with the film industry was required, or pushed by the government, to pay out any amount of his or her income. But the recent move on the part of the government to tax 10 percent of the income has unsettled almost every one within the realm of Kollywood.
The move was effected after the attempt of HMG to bring individuals into the tax net voluntarily proved almost a total failure. Those few that declared themselves before the tax department are now required to pay up 10 percent of the remuneration they charge per film. But the government is said to have pledged to bring to book all those choosing to remain aloof of the tax net. HMG is even believed to be taking upon itself to ban exhibition of films whose hands have failed to come under the tax net. However, in trying to get the cinema-wallahs to pay their taxes, the government has discovered the acting prowess of our stars. These stars are believed to have tried everything within their disposal to avoid being taxed or coughing up as little amount as possible. And in the process also losing the little amount of respect they commanded, in the words of a tax department official. Also, going by the count of the tax department (based on the number that have registered themselves with the department), the film industry is seen to be miserably lacking in manpower. (So few have declared themselves before the tax department). But, like mentioned earlier, our stars have proved their acting skills. What else can one say when a starlet who has established herself as the prima donna since quite a few years convinces the tax authorities that her income is only to the tune of some Rs 1,50,000? The lady in question is Karishma Manadhar who has about three dozen films to her credit and who charges upto Rs 3,00,000 for a film. All that Manandhar has earned is thanks to the cinema industry. However, when it came to paying her taxes, she downplayed her income to a great extent, and got away with it. Interestingly, the amount declared by Manandhar also includes the income of her husband. Manandhar’s case in only an example. To be fair to her, she has at least payed up something. There are those in the film industry that view the government is after their money and which they think is not fair. Even film hands who advertise that paying tax is a citizen’s duty have failed to practice what they preach.
On the other side of the picture, Indian worksmen, who have established their own niche here, too are seen not too keen in paying up their taxes. And the government is seen inadequate so far to bring people, from Tulsi Ghimire to Niruta Singh to Uttam Pradhan, into the tax net. Melina Manadhar is learned to have got away with paying a meagre Rs 5,000 as income tax. Among the first to visit the tax department was Mithila Sharma who is said to have stated her income to be Rs 1,00,000, thus paying income tax of Rs 10,000. There are numerous other stars who have declared their income and payed income taxes to suit their own conveniences. In this respect, some are known to have payed as little as Rs 1,000. A number of celebrities from Bhuwan KC to Shiva Shrestha and Dilip Rayamajhi are learned to have settled their accounts secretly, choosing not to divulge any figures. Even Shree Krishna Shrestha, who is said to have spent a hefty sum in paying his medical bills, is learned to have payed his income tax. Nonetheless, all stars, according to the tax department, have made extremely nominal pay off. In fact, collections registered from the film industry have fallen short by a huge 75 percent, states the department. However, the present status notwithstanding, the department is said to initiate stringent steps in future. On the other side of the picture, film-makers are said to be facing repercussions arising from the issue with stars charging film-makers to recompensate taxes payable by them. Resultantly, cost of productions have escalated, say film-makers. And the two sides are said to be involved in constant bargain battles. In India, cases of film stars cheating the tax department and film-makers assisting the stars are quite rife. That practise could soon make an entry here, warn officials within the tax department. Film-makes also see another case to worry. They have been enjoying the facility of cent percent rebate of the entertainment tax. But with the strict levying of the income tax, they fear that the facility could soon be withdrawn. Although such a measure has not been announced by the government, its effort to bring all involved with the cinema industry into the tax net has gained appreciation from all quarters. And anyway, why should the film industry be exempted from the obligation of paying the income tax when worksmen from all other fields have no qualms about it. Translated by Navin |
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