A board warns that 1% customs charge on international films could cause homegrown films to fail.

Kathmandu. The Government Of Nepal has set for a customs duty of 1% of the contract price of imported films to be assessed for the screening of the internationals films through the Economic Act. With this clause included in the budget for the fiscal year 2080/81, it appears that they are attempting to tighten restrictions on foreign films.

When importing foreign films for exhibition in the past , a system of customs levy of Rs 20,000 per film was in place. the Film Development Board suggested in a letter to the Ministry of Finance in march of last year that the film Economic Act should include a provision requiring importers to pay customs duties on the greater of 5 pertcent of the total cost of a film or an amount not less than one lakh rupees per film.

In the new Economic law, it is also stated that film related equipment and related goods brought to nepal by foreign nationals fotn filmimg here, as well as taken abroad for filmimg by Nepali nationals, may be imported or exported with out paying custom duties, provided the are taken or brought back only upon the board's recommendation.

Previously, the amount of the customs charge was provided, however, it is now specified as a percentage. The movie industry's response to this new structure has been ambivalent. Why is KL Budhathoki, the spokesman,so kind to international films? It appears that with such liberalism, the dominance of foreign films would expandf, creating a catastrophic situation where Nepali films will become defensive in the country and ultimately collapse. Let's all be vigilant, he urged.

The Film Association, a group that sponsors exhibitions, has voiced opposition to this clause in the Board Financial Act, which is administered by the Ministry of Communications. This is not useful. What is the government trying to accomplishby introducing a budget that doesn't cover what is required? Narendra Maharjan, the General Secrtetary, stated, "The drop and increase of Rs 5,000-10,000 make no logic. It does neither good nor evil."