Jun 22, 2003, 6:35 AM

Tax on Foreign Films Too High: Cinema Owner

TEHRAN -- Mehr News Agency (June 21)-- A cinema owner said that the tax imposed on screening foreign films is much higher than the one on domestic productions.

Behrouz Behbahani, a member of the Cinema Owners Association, made it known that Tehran Municipality's 70 percent tax on the screening of foreign films, as a percentage of  gross receipts, is going to harm the trade as a result.

Behbahani explained that because of this policy cinemas will have to have sales 1.5 times higher than average to make a profit, adding that "the scheme will cost the industry dearly."

He emphasized the importance of privatization in the sector and mentioned improper advertising and screening schedules, as well as heavy taxation as among the most noteworthy problems. "To make things worse, in order to cut costs, the Farabi Cinema Foundation bought second-hand prints which are not suitable for screening at all," he concluded.

Several Tehran cinemas began screening foreign films on Wednesday June 11, beginning with The 13th Warrior. Twenty-four more foreign films are scheduled to be screened in upcoming months.

GN/HG

 

News ID 135

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