Entertainment as per the Seventh Schedule of the Constitution of India is taxable!! State governments charge the Entertainment Tax to increase their revenue source. Thus the tax differs from state to state. For instance, in Maharashtra, the Entertainment Tax is 45% and for the regional Marathi film, the Entertainment Tax is Zero. Bihar charges the maximum Entertainment Tax, at 50%. Though authorities charge Entertainment Tax to generate revenue, some films are soul-stirring and have a huge impact on society.
Hence many states make such films Tax Free so that the film reaches a wider audience and the movie can bring a change in society.
India’s First Tax-Free Film
The first Indian film to become Tax-Free was film director V Shantaram‘s Jhanak Jhanak Payal Baaje 1956. The film highlighted the Indian Classical Dance form and created a fondness for declining Indian dance form in India. The film was a huge success. The Indian government saluted the film for a great message and awarded the Best Film National Award. In fact, even the popular Filmfare Awards selected the film as Best Film and Best Director award to V Shantaram. The Tax-Free status earned the film huge box-office success and the film revived Indian dance tradition.
Similarly, in the ’70s famous comedian and filmmaker Mehmood‘s made a comedy film which had a thought-provoking message. The film was Kunwara Baap (1974) which advocated the importance of polio vaccination. Many states, including Maharashtra, granted the film tax-free status. Interestingly, after its release, the film spread the message of polio vaccination across India. It played a vital role in educating Indians about polio, and it helped bring down polio cases in India. Today, India has completely eradicated polio.
Some other earlier films to be granted entertainment tax exemption are Manoj Kumar‘s Shirdi Ke Sai Baba (1977) as it advocated communal harmony; Sunil Dutt‘s Dard Ka Rishta (1982) which highlighted the need for a cure for cancer and Raj Kapoor‘s Henna (1991) which spoke of the Indo-Pak brotherhood.
Chhapaak Declared Tax-Free
Speaking of present scenario Deepika Padukone‘s film Chhapaak has been made tax-free in Chhattisgarh, Rajasthan, and Madhya Pradesh. Directed by Meghna Gulzar, who is known for making thought-provoking films like Talvar and Raazi, Meghna Gulzar once again takes a serious subject of a real-life acid attack survivor Laxmi enacted by Deepika Padukone who at the age of 15, was attacked by her jilted lover. How Laxmi went through the horrors of life and is still living life with courage forms the crux of the film.
Chhapaak is an inspirational film not only for ladies but for everyone as it hammers on the important issue to live life fully with determination despite all odds!!
Few more films on social messages that were made Tax Free were Taare Zameen Par, Mary Kom, and Rang De Basanti to name a few.
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