The AP Govt has hiked Value Added Tax (VAT) on film prints. The Govt has fixed different slabs for films based on the number of prints the producer releases.

Producers of big-budget films with more than 151 prints will have to shell out Rs 40,000 per print.

Rs 30,000 per print for 101-150 prints. 

Rs 20,000 per print For 36-100 prints,

Rs 10,000 per print for films which will be released with 36 prints or below.

A film with a budget of Rs 20 crore should actually carry a tax burden of Rs 80 lakh at 4 per cent tax but in the present system, if the film is released with 350 prints, the producer has to pay Rs 1.4 crore!.

Our state governemnt is burdening the Film industry with taxes while neighbouring states like Tamil Nadu and Karnataka exempted their producers from the tax net.