Facelift for local cinema industry

COLOMBO: The National Film Corporation is planning a series of programmes to give a facelift to the local cinema industry.

The Government Information Department in a release said the budget had granted several tax relief to invigorate the industry that has been experiencing a setback over decades. Accordingly film production, distribution, screening and laboratory facilities will be exempted from VAT.

The duty levied on certain selected imported cinema related items will be slashed from 15 per cent to five per cent while films and teledramas sent abroad for developing will be exempted from the Airport tax, custom duty and CESS.

A 10-year tax relax for modern cinema halls under construction and a five-year tax relax for the cinema halls being updated will be granted. The income tax limit on film production cost will be increased from Rs. 5 million to Rs. 25 million.

The Government seeks to facilitate increased opportunities for local and foreign producers to enter the industry, through these concessions, the release said. Arrangements are underway to set up the cinema library jointly by the Government Film Unit and the National Film Corporation.