Malayalam producers demand end to dual taxation and cap on actor remuneration amid financial struggles

After a successful first half for the Malayalam cinema in this year, the industry seems to be again caught up in a crisis. According to the latest updates, amid growing financial pressures, Malayalam film producers and distributors have once again urged the Kerala government to scrap dual taxation and rein in the ‘exorbitant’ remuneration demanded by leading actors.These long-standing demands were reiterated during a stakeholders’ meeting held in Kochi on Saturday (September 7), as part of discussions on formulating a new film policy for the state.

The meeting, chaired by filmmaker Shaji N Karun, who is leading the committee drafting the policy, focused on the heavy financial burdens facing the film industry. Producers expressed concerns about dual taxation, highlighting that apart from the Goods and Services Tax (GST) levied on ticket revenues, they are also required to pay an additional entertainment tax. This, they argue, is creating unsustainable financial pressure on film producers.

G Suresh Kumar, vice president of the Kerala Film Producers Association, stated to On Manorama that the industry is struggling with financial losses and reiterated the demand to abolish the entertainment tax. He emphasized that producers are “on the streets now,” and have been pushing for relief from the state government.
Another critical issue raised was the excessive remuneration being demanded by leading actors, which further exacerbated financial strain. Producers called for measures to regulate actor salaries, as high fees have become a major hurdle for many productions.
Distributors, on the other hand, raised concerns over inconsistent rates for affixing film posters across local bodies and sought a standardized system.
Although the meeting addressed a wide range of issues, including film financing, theater construction, and labor concerns, Shaji N Karun noted that the ongoing controversies stemming from sexual allegations in Mollywood were not discussed.
The Kerala government is expected to finalize its new film policy soon, addressing at least 25 key areas of the industry.