It has been held by many that the under-reporting of cinema ticket sales has enabled stakeholders to evade taxes to the tune of hundreds of crores. Anti-corruption activist Vijay Gopal has raised the issue and urged the Telangana government to look into evasions to the tune of Rs 500 Cr every year.
Taking to social media, Vijay Gopal wrote, “A reliable source tell me theaters under-report the sale of tickets, as it is still manual, untraceable and outdated. Because of this, Telangana loses Rs 300-500 crores in tax revenues every year. Why not make centralized repo for the same?”
But is the claim credible? It doesn’t pass the smell test. Giving a factual rebuttal, a Tollywood insider tweeted, “Rs 300 to 500 crores tax loss per year due to under-reporting of ticket sales? Kuch bhi!! Hyderabad is literally 60% plus (for urban-based movies close to 75%) of the Telangana box office. And Hyderabad is 100% computerized white ticketing. At least try to come up with a reasonable number.”
It seems the system needs bettering but it’s not really as bad as some would have us believe.