Andhra Pradesh is the only State where a 14.5 per cent of Value Addition Tax is imposed on films. This has been like a lump in the throat for the producers and distributors community for long now. A group of industry representatives, led by D Suresh Babu, yesterday met Chief Minister K Kiran Kumar Reddy to urge that the government immediately scrap the VAT.
"We are already paying the Entertainment Tax. VAT is an additional tax. Be it in Tamil Nadu, Karnataka, Kerala or the northern States, there is no VAT on films. This has been quite oppressing. There has been pressure from the officials as well," Suresh said.
Since VAT was the single-point agenda of their meeting with the CM, no proposal to hike the ticket rates was discussed with him.
Speaking later, Suresh said that a representation had been submitted to the Bombay Guild to urge the Prime Minister to scrap a service tax of 12.36 per cent on remuneration received by actors. (Service tax is the domain of the Centre).