People in the Bombay-based film industry are so used to their cops-and-robbers plots that when a real crisis ambushes them they can never see things in proper perspective. The latest flap is the budget bombshell-the straight 10 per cent ad valorem excise slapped on to films proportionate to their production costs. Almost nine blockbusters, all costing Rs 40 lakh and above, have been stopped. The cost of film production could be calculated by taking into account the total "coverage" with less 10 per cent of the expected profit. For example if a picture covers Rs 50 lakh, then Rs 45 lakh will be taken as the levy charged by the government. But within 90 days the producer will have to produce a proper cost of production. For an industry that is notorious for its mismanagement, this is an impossible task. So the ultimate result is stalemate.Published By: AtMigration Published On: Jul 9, 2007--- ENDS ---
