Now, with the bifurcation, we are afraid that the tax imposition would be a double whammy for us,' the producer reasons. 'The state government collects an entertainment tax of 13 per cent on actual sale of a ticket for films made with shoe-string budgets, and 20 per cent on mega-budget movies. Tollywood, which churns out close to 190 films with a total budget exceeding Rs 1,000 crore every year, relies mostly on studios in Hyderabad for huge settings, and on the Andhra region for lush-green fields and the large coastline as backdrops for duet songs and 'village' scenes. The Telugu film industry had incurred a loss of around Rs 7 crore a day from mid 2009 to early 2010 when the Telangana agitation intensified, creating hurdles including cancelling or rescheduling of film shootings. We expect the governments of both the states now to bring out common taxation laws,' says a Tollywood producer, requesting anonymity. Tollywood has already been hit badly by high taxes. However, what we are requesting the Telagana leadership is to initiate measures to avoid any untoward incidents that disrupt our shooting schedules. Hyderabad houses four film studios – Ramanaidu, Annapurna, Sarathi and Padmalaya, besides the Ramoji Film City, the world's largest film studio complex – as against one - Ramanaidu Studio - in Visakhapatnam, which is in Andhra region.Īll the five studios are run by the Andhra people. The reasons: Likely problems in outdoor shootings in and around Hyderabad till a new capital is established, besides taxation and other issues related to Andhra Pradesh and Telangana states. Tollywood (as the Telugu film industry is called), which is considered as the second largest film industry in the country next only to Bollywood, is now in a tight spot.
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