Continued seven week moratorium on other language films in Karnataka has gone beyond the state alarming people from showbiz industry of the entire nation. The whole issue started with a massive rally organized by Kannada Film Producers Association has taken so many turns and twists beyond anyone's expectation. While some groups are genuinely concerned about the betterment of Kannada filmdom, some are taking advantage of the situation. viggy.com gathered some of the information that may surprise many. The recent development of boycotting Kannada film producers association by some exhibitors in Bangalore and other part of the state has a very strong reason behind their stand of shutting their shops. From a peripheral look, it sounds like their protest or 'cant survive' situation. But for many, its an opportunity to do what they intend to do by joining the group.

There were major raids on some theaters who are defaulters of entertainment tax who evaded tax for almost 8 years! There are twenty plus such theaters in Bangalore alone that will receive closure notice from the authorities. They are one part of this group of exhibitors who joined the protest gang. There is one more group of non-Kannada film exhibitors who wants to demolish their theater building but not getting permission to do so. And this an opportunity for them to closedown their theaters.

To certain extent, there is disparity within themselves. In Bangalore alone almost 15 theaters that announced as closed are still screening films!

Here is another interesting information why these exhibitors are greedy about other language films over Kannada. Look at the table below:

Region:	Distribution of non-Kannada films in these regions are from:
BKT	Bangalore
Mysore/Mandya/Koorg/Hasan	Bangalore
Bombay Karnataka	Mumbai
Hyderabad Karnataka	Guntkal/Sikandarabad
Chitradurga/Bellary	Gunthkal
Shimoga/Chikkamangalore	Bangalore
South Canara	Bangalore

This shows the distribution of non-Kannada film in almost 60% areas of the state is controlled by outsiders. There is something called Lease Tax (8% of the sale value + 15% cess on that), which is beared by producers when they give the distribution rights, and again by the distributor when they give it to exhibitors. Since distribution of other language films in most of the regions are done outside of Karnataka, the State Govt. won't have any control on Lease Tax. And hence, distributors gain better profit margin and can offer more rent and perks to exhibitors. In fact, abolition of this tax is one of the demands of Kannada film producers.

An exhibitor says if they can evade tax by 'dealing' with tax officers, why pay lakhs together to government! Its clear that at the end of the day, they want to be profitable by evading tax or by higher rent from non-Kannada films!

Members of Kannada Kavalu Samithi yesterday (Saturday) staged a dharna in Bangalore condemning the statement made by K.V. Dhananjay and protested against the plan of solidarity march in Bangalore by non-Kannada film exhibitors along with Telugu, Tamil and Hindi film stars.

As it stands today (Sunday), there is a meeting scheduled today by Kannada Film Exhibitors Federation in Hubli to draw the future plan of action. The government appointed panel will hold a meeting early this week.