Local movies shown after 2010 and grossed up to RM6 million are eligible for the film incentive payment.
The new scheme was approved by the Cabinet on Feb 23 to replace the entertainment tax rebate scheme, which is perceived as ineffective since 2000.
Minister of Information Communication and Culture Datuk Seri Dr Rais Yatim said the new scheme would be based on ticket sales in determining the amount of incentive payment.
“Film producers must submit proofs of ticket sales docket to the National Film Development Corporation Malaysia (Finas) for verification before payment is approved,” he told a news conference after presenting incentives to producers of 13 movies here today.
The movies are “Lu Pikirlah Sendiri The Movie”, “Lagenda Budak Setan”, “Kapoww”, “Estet”, “2 Alam”, “Aku Tak Bodoh”, “Janin”, “Aku Masih Dara”, “Damping Malam”, “Ice Kacang Puppy Love”, “Lelio Po Po”, “Whoohoo”, “Appalam” and “Crayon”.
According to the new scheme, feature films grossing up to RM2 million will be entitled to an incentive payment of RM200,000 while films grossing between RM2 million and RM4 million will receive 10 per cent of the ticket sales.
Feature films grossing between RM4 million and RM6 million will get an incentive payment of five per cent of tickets sales while films grossing more than RM6 million will not be entitled to the incentives.
Rais said the entertainment tax rebate scheme was rendered ineffective due the economic situation while state governments which adopted the scheme since 1987 stopped paying the tax rebate since 2000.
The Kelantan, Terengganu and Perlis governments do not implement the scheme as they have no cinemas and likewise the Sabah government as it does not impose an entertainment tax for films screened in the state.
Rais said films produced before 2010 were subjected to the entertainment tax rebate scheme.
In 2010, 29 local feature films, which were produced, grossed RM76.02 million and earned RM12.83 million in entertainment tax rebate.
— Bernama
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