Indian film industry to shut down on 23rd Feb in protest against Service Tax!

The Film Federation of India (FFI), the apex body of the film industry of India has proposed a nationwide shut down of the industry on 23rd February, 2012, in protest against bringing the film industry and trade under the purview of the Service Tax by the Government of India. The South Indian Film Chamber of Commerce also plans to file a case against the government decision simultaneously.

According to a letter written by the convener of FFI's Service Tax Committee Ravi Kottarakara Rao, the film industry is in deep trouble because of various taxes it is subjected to and the imposition of service tax will further increase its burden. The letter has been widely circulated to various film associations and the members of the industry. It is worth a mention here that the idea to go for a general strike was initiated by the South Indian Film Chamber of Commerce that wields considerable influence over the South Indian film industry.

However, the Film Producer's Guild, the association of top line Bollywood producers, is not part of the FFI and if it will be willing to join the general strike or not is still uncertain.

(Rajesh Kumar Singh is Editorial Consultant for Festivals and Markets for BollywoodTrade.com. He is a filmmaker, critic and market analyst)