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SSUE, SOK, Em Magan – beneficiaries of tax rebate
Sep 23, 2006
Sillunnu Oru Kadal

Due to the waiver of entertainment taxes to films with Tamil titles, Kollywood has benefited enormously. The three latest films that have changed its title from English to Tamil have grossed around 3 crores as profit due to the waiver of entertainment taxes alone. Generally 15% of a film’s collection should be paid as entertainment taxes to the government. It is this segment that the CM has waived off.

The films that have changed their titles are Sillunnu Oru Kadal, Enakkum Unakkum and Em Magan.

Enakkum Unakkum has earned around 8 crores and saved 1.5 crore. Em Magan which is a success in B and C centres has managed to put aside around 1.20 crore. Sillunnu Oru Kadal is a moderate success with approximately 70 lakhs in its kitty. Following the lead from these films, Ajith’s Godfather has been rechristened as Varalaru. The other films to follow suit are ‘Pradhi Nyayiru 9 mudal 10.30 varai’, ‘azhagiya asura’, ‘Ninaithaale’, ‘Maanava Manigal’ and ‘Ranga’.

Films that have already been titled in Tamil would get a rebate on their taxes based on their collections. In Tamil, around 100 films are made every year and an approximate amount of 60 crores are being paid as taxes to the government. So, in the present scenario, Kollywood is likely to earn a profit of 60 crores per annum. The amount that has been saved due to this rebate would be shared among the producer, distributor and theatre owner.

Enakkum Unakkum
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