Movie house owners want viewing tax cut

Movie house owners want viewing tax cut

JAKARTA (JP): The association of movie house operators
(GPBSI), many of whose members are now threatened with
bankruptcy, is urging the government to cut its high 33.3 percent
tax on admission tickets.

GPBSI chairman Johan Tjasmadi said on Monday that this year
alone, 652 movie houses, or 30 percent of the 2,292 cinemas
nationwide, have ceased operation because they could not attract
large enough audiences.

Although the recession is biting particularly hard on small
movie houses catering to medium and low income people, 40 up-
scale cinemas belonging to the "21" Group have also closed this
year, Johan pointed out.

Briefing reporters on the association's plan to hold its
congress on July 23-25, he said the high tax on viewing is one of
the main factors leading to attendance by fewer and fewer people
at cinemas, Antara reported yesterday.

The declining number of Indonesian films, which are popular
among people from middle to low income groups, is another factor,
he said, adding that a reduction in the viewing tax could also
help reinvigorate the moribund local film industry.

He pointed out that viewing movies by means of laser discs,
videos and televisions at home -- three media which pose direct
competition with movie house operators -- are not subject to
taxes.

Johan said there is also a need to regulate the distribution
of film titles between movie houses, laser disc and video rental
shops, and television, so that each can compete in a more healthy
manner.

He pointed out that in the United States, movie houses get the
first chance to screen the latest film releases during the first
six months; the next six months are allocated to video and laser
disc rental shops; only after one year are the films available to
television stations.

Johnny Syafruddin, chairman of the upcoming congress'
organizing committee, said one of the topics of discussion would
be the increasing competition posed by television, and video and
laser disc rental shops.

The congress, which coincides with the association's 25th
anniversary, is scheduled to be opened by Minister of Information
Harmoko and will be closed by Alex Leo Zulkarnaen, the Director
General for Radio, Television and Film.

The event will run concurrently with the 40th Asia-Pacific
Film Festival in Jakarta.(emb)