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)