We are just one day away from the release of Superstar Rajinikanth's 'Kabali' and with the extraordinary buzz surrounding the film, it has got tax exemption. The film which has a U certificate from the Censor Board has now been awarded tax exemption by the Tamil nadu government on Tuesday.
This will now improve the prospects of distributors in recovering their huge investment. The 30 percent entertainment tax exemption means that the theatrical gross will be the net revenue for the stakeholders. Entertainment tax is imposed by the government on feature films getting a wide release in India.
While in Tamil Nadu, Tamil films are tax free with certain criteria like the film should be certified "U" by the censors, they should be in line with promotion of Tamil language and culture and should also have a Tamil title. For failing to conform to any of these, a 30 percent tax is imposed on films.
Kabali has already raked in nearly Rs. 200 crore before release. The film's Tamil Nadu theatrical rights have reportedly been acquired by Jazz Cinemas for a record price.
(Content provided by Digital Native)