Telangana Mandates 20% Levy on Movie Ticket Price Hikes for Film Workers

The Telangana government has issued fresh directions mandating that 20 percent of the additional revenue generated through movie ticket price hikes must be contributed to the welfare fund for Telugu film industry employees.

According to the latest orders, the 20 percent welfare contribution must be paid to the Telangana Film Development Corporation (TGFDC) and deposited into a designated account for worker welfare. The government has authorised film producers to collect the applicable contribution from exhibitors on the incremental earnings from increased ticket rates.

The directive applies to films including Akhanda 2, The Raja Saab, Mana Shankara Vara Prasad Garu, and Peddi. Official letters have been issued to production houses, including 14 Reels Plus LLP, People Media Factory, Shine Screens India LLP, and Vriddhi Cinemas LLP, authorising them to collect and deposit the funds through the TGFDC.

The decision has drawn mixed reactions from within the Telugu film industry. Telugu Film Producers Council secretary T Prasanna Kumar expressed disappointment over the order, stating that it would negatively impact the wider producer community. He noted that only a small percentage of producers request ticket hikes, yet the policy affects others.

Prasanna Kumar highlighted that the 2021 film Akhanda was a commercial success without any ticket hike, whereas Akhanda 2, released with increased prices, saw different results. He also pointed to films such as Maa Inti Bangaram, DC, and Lenin, which performed well at standard ticket rates, arguing that higher prices deter audiences.

Conversely, producer and exhibitor Suniel Narang welcomed the move, calling the contribution reasonable. Narang noted that the levy amounts to roughly Rs 2 for every Rs 10 collected through price hikes and directly supports the welfare of industry workers.