Chief Minister B.S. Yediyurappa presented the Karnataka state budget for 2009-2010 last week and he had some good news for the film industry. He announced a 10% cut in entertainment tax for non-Kannada films, reducing it to 30% from the existing 40%.
He also announced some sops for Sandalwood in his budget presentation at the Assembly. Rs. 5 crore will be allocated for the construction of 'Amrutha Mahotsava Bhavana' on the occasion of the Platinum Jubilee Celebration of the Kannada cinema this year.
Despite the sops given, it seems that Sandalwood is not happy with the budget at all. Earlier, KFCC had requested the government to give a subsidy of Rs. 10 lakhs for all films and introduce Anti-Goonda act to tackle piracy. It had also requested for withdrawing the Show tax applied to cinema theatres. But none of the three demands have been met by the budget, leaving the film makers in a state of frustration.