(a) the extent to which the economic potentialities have been increased after
according the status of industry to the film Industry;
(b) whether the persons belonging to this sector have submitted their demands to the
Government ; and
(c) if so, the details of the demands and the reaction of the Government thereto?
THE MINISTER OF STATE OF THE MINISTRY OF INFORMATION AND
BROADCASTING AND MINISTER OF STATE OF THE DEPARTMENT OF
DISINVESTMENT (SHRI ARUN JAITLEY)
(a) After the status of Industry Sector was accorded to the film industry, in the
Budget for 1999-2000, the benefit of a new section 80 HHF of the Income Tax Act
has been made applicable to companies engaged in the export of entertainment
software.
(b)&(c) The Ministry has taken up the following proposals received from the film
industry with the Ministry of Finance in view of emerging convergence of
Information Technology (I.T.), telecommunications and entertainment technologies
and for optimizing growth of entertainment industry, thus making it possible to tap
its full potential as a foreign exchange earner and to generate employment
opportunities:
(i) rates of customs duty on professional equipment for films, television and
music industry may be similar to the duty structure laid down for I.T. sector;
(ii) customs duty and countervailing duty on color raw stock be waived as it is not
manufactured in India;
(iii) exemption from payment of excise duty on pre-recorded video cassettes may
be given with retrospective effect;
(iv) excise duty on compact discs be waived as in the case of pre-recorded
cassettes in order to deprive manufacturers of pirated CDs of an unfair price
advantage
(v) benefits of the new section 80HHF of the Income Tax Act, 1961 to be made
applicable to proprietors, individuals etc. engaged in the export of
entertainment software as well and with retrospective effect from 1.4.89.