With the state bifurcation, problems started to creep in for Tollywood as well. The Andhra Pradesh film Chamber of Commerce changed its name to Telugu film chamber of commerce to maintain its hold on both the regions of the state. However Telangana film chamber of commerce is not going to withstand this. It is going to insist that if films are made in Telangana and if tax concessions and subsidies will be claimed from the Telangana state government, producers will have to take an NOC only from the Telangana Film Chamber of Commerce.
The NOC is necessary for the censor certification of the movie. They are confirming that an NOC from Telugu Film Chamber of Commerce will not entitle a film to get tax subsidies and concessions from Telangana government. The big heads of Telangana unit are planning to meet Chief Minister K Chandra Sekhar Rao and push in for the changes in the laws. Earlier, films produced outside the state had to pay 24 per cent entertainment tax. Now after the division if two separate Chambers exists, NOC from one state will lead to 24 per cent tax in other state which will be certainly detrimental to Telugu films.
