Megastar turned union minister, chiranjeevi, has shown his gratitude on tollywood. Going by the details, the producers council and the trade bodies have given a representation to the CM, Mr.Kiran Kumar Reddy, to abolish VAT( Value Added Tax). This file has been in a pending stage for a long time. However, The newly recruited Union Minsster, chiranjeevi talked about this issue specially to the CM and he used his influence at Delhi level. Finally, The CM has accepted to abolish VAT on movies and the orders will be served soon. As a token of a gratitude, the producers and trade people such as Thammareddy Bharadwaj, Sravanthi Ravi Kishore, Nallamalupu Bujji, T.Prasanna Kumar, BVSN Prasad, C.Kalyan, Kodali Venkateswara Rao, Paruchuri Prasad and others met chiranjeevi on Sunday night and thanked him.
As of now, VAT has been a big burden over 800+ tollywood producers. A tax of 10.2% has been levied from the producers. For instance, if a movie is made with a budget of Rs.20 crores, the producer has to pay a tax of Rs.2 crores on it. Now, the producers have got benefited this amount.