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Bollywood follows southern film industry, demands to cancel
January, 18th 2013

Last week, we saw the southern film industry protesting against the government's demand for additional service tax. Now, Bollywood has followed suit. The Hindi film industry has informed the government that no film will release until they roll back the tax demand, reports Mumbai Mirror.

The tabloid quoted a source saying: "Not many actors pay their service tax from their pocket. Most of them openly tell the producer that he has to pay them 12.36 per cent over and above their acting fee. This in turn is burdening the producers.”

According to the daily, President of the Film and Television Producers Guild of India, Mukesh Bhatt confirmed the news and said they are compelled to enforce a closure by end of Janaury if service tax and VAT are not waived.

"We cannot take the burden any longer. It saddens me that in the 100th year of Indian Cinema when we should be celebrating, the insensitivity of the government to our problems has put us on the brink of perishing," he added.

Rajinikanth goes on a hunger strike
Some of the stars from the Tamil film industry have gone on a hunger strike against being asked to pay additional service tax. Superstar Rajinikanth has also joined the protest.

Known Tamil actors such as Vijay, Sarathkumar, Radhika and Suhasini are also part of the fray.

The tax of 12.36 per cent, they argue, should not apply because the service tax on the entertainment industry was partly lifted a few years ago exempting producers, exhibitors and distributors, reports NDTV.

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