The South Indian Film Chamber of Commerce has objected to the entertainment industry being slapped with 28 per cent tax rate under GST, the highest slab on par with gambling and horse racing.

Leading industry personnel urged the Government to bring down the rates as the entire entertainment industry, particularly the regional film industry, would be drastically hit. GST on copyright sale should be slashed to 5 per cent from the proposed 12 per cent; on services like artistes and technicians to 12 per cent from 18 per cent; and entertainment tax to 18 per cent from 28 per cent envisaged now.

Addressing media persons on Friday, Kamal Haasan, actor and producer, said the regional film industry should not be treated on par with those players with national and international reach. This will cripple regional film industry that forms the backbone of entertainment industry.

The high rates envisaged under the GST will make the industry unviable and are a retrograde step.

L Suresh, President, SIFCC, said the industry welcomes the concept of GST but it is unfortunate that it has been lumped in the same tax bracket as luxury and ‘sinful’ industries like tobacco, liquor and gambling.

The domestic industry, over three-fourths of which is by regional films, will be badly hit. Also, with 90 per cent of the productions bombing in the box office, there could be huge tax implication which cannot be recovered.

The Film Chamber has represented its case to the Tamil Nadu government and respective state government to take up the issue at the GST Council tomorrow, he said.

Ravi Kottarakara, Secretary, SIFCC, said there is a huge jump in entertainment tax which is now not levied in major States like Karnataka and Maharashtra. In Tamil Nadu films with Tamil titles are exempted. Also there is no clarity on set off of input credit which can be complicated in the entertainment industry.