Telugu Film Producers Council has told the media on Wednesday that Andhra Pradesh Government has expressed its concern over the value added tax, which is likely to financially damage the film industry. It may be noted that the council members met the chief minister Kiran Kumar on Tuesday and urged him to look into the VAT on cinema. The producers told that CM responded to them positively and assured them that VAT would be removed.

The producers have expressed the problems the burden they were facing due to VAT and stressed that the producers had been paying VAT for the past seven years unlike other film industries. Apart from entertainment tax, VAT has become a burden to them, added Tollywood producers. The moment this news was out on internet, debates were high among financial analysts and sympathizers of have nots. The analysts were of the opinion that ministesr always respond swiftly and assure things to people who are in the reel world while the problems faced by aam aadmis (common people) will often go unnoticed.

AW Phani