‘Binding Film Finance Fund’ set up

ISLAMABAD:

Striving to boost the local film industry that had suffered a setback due to Covid, the government has set up a “Binding Film Finance Fund” at a cost of Rs1 billion per annum in addition to major tax exemptions for artists.

In a statement on Friday, Information Minister Marriyum Aurangzeb said a medical insurance policy was also introduced for artists and filmmakers.

She added that in addition to a five-year tax holiday for film makers, a five-year tax rebate on establishment of new cinemas, production houses, film museums and tax rebate on export of film and drama for ten years was also given in the budget. “Incomes of cinemas and producers have been exempted from income tax for the same duration.”

Marriyum went on to say that apart from the National Film Institute and Post Film Production Facility, a National Film Studio was being set up at a cost of Rs1 billion.

Cinemas, production houses, film museums, post production facilities were being given the status of CSR. Rebates would also be given to foreign filmmakers on joint film and drama projects locally.

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However, the information minister added that for this to take effect, the condition of shooting 70 per cent of the film in Pakistan would be applicable so that business activities including tourism and culture flourish, while employment, youth skills were also promoted through marketing of different areas.

Marriyum said the 8% withholding tax on distributors and producers was also being abolished under the 2022-23 Budget.

There would also be a five-year exemption from customs duty on the import of machinery, equipment and supplies for films and dramas.

With the Finance Bill 2022, Customs Act 1969 and Finance Bill 2018 amended to completely exempt importing equipment for new films and dramas from sales tax and entertainment duty.

The minister said these measures would revive the country's film industry while restoring Pakistan's disconnected communication with the world. “Young people would have the opportunity to work in the film industry and new talent would be encouraged.”

She maintained that the promotion of film and culture, heritage, drama and fine arts was essential to increase tourism, social diversity, and improve Pakistan's culture and identity globally.

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In 2018, the first 'Film and Culture Policy' in the history of the country was approved by the cabinet in PML-N's era. However, unfortunately for the last four years it was not implemented and was not able to move forward.

The film has now been given industry status by implementing the 2018 Film Culture Policy, she said.
Marriyum was grateful to Prime Minister Shehbaz Sharif and Finance Minister Miftah Ismail for understanding the importance of film and culture in national progress and development.

She also extended gratitude for approving historic incentives and relief measures for Pakistan's film industry in Budget 2022-23.