Film halls to be closed nationwide on Feb 5
Narendra Maharjan, the association's general secretary, sought the repeal of all unjustified taxes other than value added, and stated that as a protest, no movie theaters in Nepal would be open on that particular day.
KATHMANDU: The Nepal Film Association, an umbrella organization of film exhibitors and distributors, prepares to close movie theaters across the country on Monday, Magh 22 (Feb 5), in protest of the film production fee and local entertainment tax.
Narendra Maharjan, the association’s general secretary, sought the repeal of all unjustified taxes other than value added, and stated that as a protest, no movie theaters in Nepal would be open on that particular day.
“We are compelled to bear a tax burden exceeding 33% under various tax categories. Our business is suffering, and after the imposition of value-added tax and corporate tax, along with additional taxes like film development fees and local entertainment tax, we are unable to sustain the film industry.
Despite the commitment to refrain from imposing additional taxes, our decision is necessitated due to these financial challenges,” expressed General Secretary Maharjan.
He highlighted the diminishing number of operating movie theaters, currently standing at 150, and lamented the difficulty in running the film business.
Presently, showcasing Nepali movies incurs a 5% local entertainment tax, 13% value-added tax, and an additional 18% tax.
Foreign films, subject to a 33% tax, also bear a 15% film development fee.