Film industry wants CVD exemption on raw stock

The film industry, which had heaved a sigh of relief when the countervailing duty for unexposed colour films was abolished in 2002, is once again battling for a similar status since it was re-introduced in 2004.

Although the raw stock is imported, the CVD was imposed over two decades earlier since the Hindustan Photo Films sliced the jumbo rolls into smaller ones.

"CVD should be done away with since it was introduced to protect domestic manufacturers while raw film is imported," says Mukesh Bhatt.

Delegations of the film industry led by Film Federation of India President Jitendra Jain recently called on Finance Minister Pranab Mukherjee and Information and Broadcasting Minister Ambika Soni in separate meetings to press various demands relating to the budget, and said though unexposed negatives are not produced within the country, the industry has been paying CVD. Though this was removed in 2002, it was re-imposed in 2004 at the rate of 16 per cent.