ISLAMABAD: The government has set aside Rs1 billion for the “Binding Film Finance Fund” for National Film Institute, Post Film Production Facility and National Film Studio for the fiscal year 2022-23.
In a statement, Federal Minister for Information and Broadcasting Marriyum Aurangzeb said that the government has set up a “Binding Film Finance Fund” and “Medical Insurance Policy” for artists in addition to major tax exemptions in the Budget 2022-23 to boost Pakistan’s film industry and other sectors such as tourism associated with it.
She said that in addition to this, five-year tax holiday for filmmakers, five-year income tax relief on the establishment of new cinemas, production houses, film museums and tax rebate on the export of film and drama for 10 years was also given in the budget. Also, income of cinemas and producers have also been exempted from income tax for the same duration.
She said cinemas, production houses, film museums, post-production facilities are being given the status of CSR. Rebates would also be given to foreign filmmakers on joint film and drama projects locally, she added. However, she said that for this to take effect, the condition of shooting 70 percent of the film in Pakistan would be applicable to them, so that business activities including tourism and culture flourish, while employment and youth skills are also promoted through the marketing of different areas.
The information minister said that the eight percent withholding tax on distributors and producers was also being abolished under the 2022-23 budget. There will be a five-year exemption from customs duty on the import of machinery, equipment and supplies for films and dramas. With the Finance Bill 2022, Customs Act 1969, Finance Bill 2018 has been amended to completely exempt importing equipment for new films and dramas from sales tax and entertainment duty.
Aurangzeb said these measures will revive the country’s film industry while restoring Pakistan’s disconnected communication with the world. Young people will have the opportunity to work in the film industry and new talent will be encouraged.
She said the promotion of film and culture, heritage, drama and fine arts was essential to increase tourism, social diversity, and improve Pakistan’s culture and identity globally. In 2018, the first “Film and Culture Policy” in the history of the country was approved by the Cabinet in the PML-N’s era. However, unfortunately for the last four years, it was not implemented and was not able to move forward.
The film sector has now been given industry status by implementing the 2018 Film Culture Policy, she said.
Copyright Business Recorder, 2022
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