950820

Film distributors

flay duty, ST on

exhibition rights

KARACHI: The Pakistan Film Distributors' Association (PFDA) has demanded of the government to withdraw the imposition of exhibition rights duty on imported English films because due to the imposition of this duty on exhibition rights about 100 imported films have been lying at the airport and the film distributors, exhibitors and cinema owners have been suffering immensely.

Shahid Shafaat, chairman of PFDA told PPI here on Sunday that the association had already approached Prime Minister Benazir Bhutto and minister of State for Finance, Makhdoom Shahabuddin and written separate letters to them to withdraw customs duty and sales tax on exhibition and distribution rights on imported 35mm exposed cinematographic film.

Shafaat has written to both the prime minister and the state minister for finance that prior to the advent of the current year, customs duty and sales tax were charged on the actual lenght of prints, publicity material and cost of actual freight only and the exhibition and distribution rights were not included in the assessment of duty and sales tax as per letter No: 1(90) SS (CB/76) dated October 6, 1976 issued by the Government of Pakistan Central Board of Revenue.

He further said that since January 1, 1995 the Custom Airfreight Units at Karachi, Lahore and Islamabad, have started unilaterally to charge customs duty and sales tax on the exhibition and distribution rights which have mounted the customs duty from $1000 to $10,000.

The PFDA chairman, said that this is an abnormal and unparallel jump. Consequently, the films imported have been lying with the customs authorities uncleared, he added.

He apprehended that under the above abnormal situation, imported American and other English foreign films in Pakistan would be completely out of reach and thus become a loosing business for the importers and distributors.

The PFDA chairman, further apprehended that the stoppage of import of foreign film because of the exorbitant customs duty and sales tax through unilateral assessment on exhibition and distribution rights, would create unemployment in the country and the cinema houses will be converted into super markets and high-rise plazas and the exchequer would be the loser in terms of less entertainment duty collection, he added.

Shahid Shafaat appealed to both the Prime Minister and the Minister of State for Finance to take immediate action and order immediate withdrawal of the customs duty and sales tax on exhibition and distribution rights of 35mm exposed, theatrical cinematographic films exposed.-PPI