Why has Jagan no sympathy towards Tollywood?

The stubborn stand of YSR Congress party president and Andhra Pradesh chief minister Y S Jagan Mohan Reddy towards Tollywood and his reluctance for increasing the ticket prices in theatres has been an enigma to the industry people for quite some time.

But there is a reason for Jagan’s lack of sympathy towards the Telugu film industry.

According to highly placed sources, he reportedly made enquiries with the officials as to what benefit the state government would get by granting favours to the film industry and what revenue the state would get from the industry.

Jagan was shocked to know that what the state government would get from the film industry in the form of entertainment tax was pittance. For the last few years, the tax revenue from the films to the state has been not more than Rs 15-20 crore.

“Even during the years of big-ticket films like Baahubali, which claimed to have grossed nearly Rs 1,000 crore, the tax revenue to the state was not more than Rs 20 crore, which is not even equal to the remuneration paid to a popular hero for a single film,” a source in the government said.