Key Facts
Kerala Finance Minister K.N. Balagopal presented the state budget for 2025-26 on February 7, 2025, with a strong focus on reviving the cinema industry. The budget allocates funds for a new film city, tax incentives for film production, and measures to promote regional cinema. This is seen as a major boost for the entertainment sector in the state.
Details of the Budget Proposals
New Film City
The government has announced the establishment of a state-of-the-art film city in Kerala. The project aims to provide world-class infrastructure for film shooting, including sound stages, post-production facilities, and outdoor sets. The film city is expected to attract filmmakers from across India and abroad, generating employment and boosting tourism.
Tax Incentives for Film Production
To encourage film production in the state, the budget proposes a reduction in GST on production-related services from 18% to 12%. Additionally, new film studios will be eligible for a five-year tax holiday. These measures are designed to make Kerala a competitive destination for filmmakers compared to other states like Maharashtra and Tamil Nadu.
Support for Regional Cinema
The budget also includes a special fund of ₹50 crore for the promotion of Malayalam cinema and other regional languages. This fund will be used for film festivals, subsidies for independent filmmakers, and digital preservation of classic films.
Impact on the Entertainment Sector
The initiatives are expected to create thousands of jobs in the film industry, from technicians to artists. The film city alone is projected to generate direct employment for 5,000 people and indirect employment for 15,000. The tax incentives will reduce production costs, making it easier for small and medium-budget films to be made in Kerala.
What Readers Should Know
- Timeline: The film city is expected to be operational by 2027, with land acquisition starting in 2025.
- Eligibility: Tax incentives apply to films that have at least 50% of their shooting in Kerala.
- Application Process: Filmmakers can apply for subsidies through the Kerala State Film Development Corporation (KSFDC).
FAQ
What are the key highlights of Kerala Budget 2025 for the cinema industry?
The budget proposes a new film city, tax incentives for film production, and support for regional cinema to boost the entertainment sector.
Where will the new film city be located in Kerala?
The exact location has not been announced yet, but it is expected to be developed in a central district to attract filmmakers.
How will the tax incentives benefit filmmakers in Kerala?
Filmmakers will get reduced GST on production costs and tax holidays for new studios, making Kerala a more attractive destination for movie production.