Prime Minister Mahinda Rajapaksa has agreed to grant tax concessions to promote the local film Industry following a discussion with film industry professionals had with him at Temple Trees last week.
The tax concession he had granted during his tenure as President was annulled by the Good Governance (Yahapalana) Government.
The professionals conveyed to the Prime Minister their grievances and the impact of the tax on film production and equipment.
The Secretary to the Ministry of Finance and the Ministry of Religious and Cultural Affairs has decided to grant the previous tax concessions after discussions with the Premier. The tax concession covers the import of equipment used in film production and screening.
As the then President, Premier Rajapaksa had granted VAT exemption on production, distribution and exhibition of any film and supply of laboratory facilities for the production of films. VAT was reduced to 5 per cent and import duty was exempted on the import of specific items used in the film industry.