MUMBAI: With the Finance Ministry in Indonesia set to scrap proposals for royalty tax on repatriated revenues and replace it with a new tax that is defined by the length of the imported film, return of Hollywood films to Indonesian screens in time for the summer blockbuster season seems like a given conclusion.
Although details are still being hammered out, the solution was agreed in principle last week at a series of meetings between the finance, tax and tourism ministries, local distributors and the Motion Picture Association of America (MPAA) that represents major Hollywood studios.
The dispute between the government and the film industry in Indonesia had seen a stop in the release of all Hollywood studio movies since last February.