Motion Picture Herald (May-Jun 1943)

May 15, 1943 MOTION PICTURE HERALD 41 NEW TAXES IN BRITAIN RAISE TICKETS 33% Exhibitors and Exchequer Cooperate on New Scale; Cheap Seats Exempt by AUBREY FLANAGAN in London Though during the past year or so the British picture-house owner has passed over to the Exchequer some £28,000,000 odd ($11,312,000,000 at current exchange rates of $4.04 to the pound) in the form of taxation collected from the public, so insatiable is the Moloch of war that this year he will have to collect another £8,000,000 ($3,232,000,000) or so. As already recorded in these pages, the Chancellor of the Exchequer, Sir Kingley Wood, has once again increased the Entertainments tax, raising it by an all-round figure of approximately 33 per cent. Last year the entertainment industry, of which, on Sir Kingsley's own admission, the picture house plays a 90 per cent part as provider of revenue, netted £31,246,000 in theatre tax, exceeding the Chancellor's estimate by nearly £3,250,000. Sensible to the obvious fact that picture-going is in a boom state in wartime Britain, and cognizant of the admissions and near braggings of the circuits and theatre groups, he has decided that this year the industry must collect another £8,000,000, or £9,000,000 in a twelvemonth period. Increase Seat Prices May 16th Thus the British motion picture patron once again faces an increased scale of admissions. Seat prices will be raised on May 16th to include the new tax scale. The odds are that he will face it with the same aplomb and readiness to cough up as he has done in the past year. Not the least significant factor in the new tax situation has been the collaboration asked and given the Chancellor's Custom and Excise Department. Though little was known and nothing stated on this side of the Atlantic, it is a fact, and a fact only allowed to leak out after the Budget, that the industry — the Cinematograph Exhibitors Association at least, were told in advance of the intention to raise the theatre tax. They offered and had accepted their own suggestions on its modification. Exempt Tickets Under Shilling Conversations were held between the Customs and Excise and the CEA Tax Committee, and by this week's General Council it was possible to present the rank and file with a fait accompli. So satisfied were these latter that threats of revolt and protest soon hushed down, melted, in fact, to a complete acceptance of the scale devised with the aid of the Association's officers. Happiest result of the talks has undoubtedly been the exemption from taxation of all seats priced at a shilling and under. The WHAT BRITISH FILMGOERS PAY Following are the new British tax rates which were based on the recommendations of the Cinematograph Exhibitors Association: Admission Excluding Tax r Ex Not Ex ceed ceed ing ing Rate of Tax s. d. s. d. dollars s. d. dollars 83/4 iqy2 ( .13 .17) 7'/2 ( -II IOl/2 1 0"/2 ( .15 .21) 8l/2 ( -13 i o'/2 1 4l/2 ( .21 .26) 101/2 ( -15 1 4'/2 1 8 ( .26 .32) 1 1 ( -21 1 8 1 9 ( .34 .35) 1 3 ( .24 1 9 2 0 ( .35 .40) 1 6 ( .29 2 0 2 2 ( .40 .43) 1 7 ( .30 2 2 2 6 ( .43 .50) 2 0 ( .40 2 6 3 0 ( .50 .60) 2 6 ( .50 3 0 3 5 ( .60 .67) 2 7 ( .51 3 5 4 2 ( .67 .83) 3 4 ( .67 4 2 4 1 1 ( .83 .99) 4 2 ( .83 4 II 5 5 ( .99-1.08) 4 7 ( .91 5 5 5 1 1 (1.08-1. 19) 5 0 (1.00 5 1 1 6 5 (1. 19-1.29) 5 2 (1.03 6 5 6 1 1 (1.29-1.39) 5 10 (1.18 On prices over 6s. lid. ($1.39) the tax is 5s. lOd. ($1.08) for the first 6s. lid. and 5d. for every 6d. or part of 6d. over 6s. lid. Chancellor's original intention was to set a ninepenny deadline. This was raised by agreement to Is. Certain other adjustments were agreed upon which undoubtedly prevent the complications and entanglements which followed last year's tax increase. Then the scale presented by the Chancellor was found inoperable, and an entirely new one had to be devised and agreed upon between the Government and the exhibitors. Exhibitors who last year grumbled and cavilled have this time faced the inevitable with a good grace. It is agreed that the new tax must be passed on to the public for it is the Treasury's intention that the public shall pay. Exhibitors who considered meeting the increases themselves out of Excess Profits Tax have been dissuaded from so doing. The increases are considerable. In some cases they are as high as 100 per cent on the existing tax as it stood after last year's increase. In the general run of seats, however, the scale is reasonable. There is, as already recorded, no increase on the bread and butter seats at a shilling and under. The principal changes are hereunder : Gross Seat New Gross Is 3d seat becomes 1/6 exhibitor gains '/2d. Is 6d seat becomes 1/9 exhibitor gains 'A^ 2s seat becomes 2/3 exhibitor gains '/2d 2s 6d seat becomes 2/9 no change 3s seat becomes 3/6 exhibitor gains .Id. Since in the normal way 90 per cent of the tax revenue was derived from seats priced at Is 6d and under, and 16 per cent from those below seven pence, it will be realized that the exhibitor is not so badly hit as he might have been. Attendances being on the average around the figure of 1,400,000,000 annually, there is little likelihood of the Treasury's target not being reached. Public May Prefer Cheaper Seats It is, of course, not to be forgotten or ignored that other working class luxuries such as tobacco and beer have been subject to an increase of taxation too. The total purchasing power of the public thus becomes somewhat reduced. On the other hand, the scale of increased taxes on the living theatre is much less onerous than that imposed on the more profitable picture house industry. There are one or two minor difficulties. One of these is the likely abolition in a great number of houses of the one and threepenny seat. This will now go to a shilling and ninepence. It remains to be seen whether the public will pay the extra "tanner" or prefer to queue for the shilling seats. In general it is believed a net result of the new scale will be a tendency to patronize the lower grades. The original scale proposed left the tax unchanged up to and including gross admissions up to 9d. In regard to stages above it provided for inconvenient prices such as Is Id, 1/5, 1/8, 2/3, as well as having the unworkable price of 1/1 instead of 1/gross. The CEA Tax Committee accordingly made representations which have resulted in the new rates which are scheduled in the Budget. Castle Films to Release Three Canadian Subjects Three 16mm. films for non-theatrical distribution produced by the Canadian Film Board have been released by Castle Films. They are "Forward, Commandos," "Women Are Warriors" and "Battle of the Harvests." They will be shown primarily in war plants, but are available to civic and social organizations. The films, equipped with sound, will be sold at two cents per foot, a procedure similar to the company's agreement with the U. S. Office of Education on films produced by that agency. The National Film Board of Canada opened a New York branch on Fifth Avenue in New York recently. The Board's main office in the United States, however, remains in Chicago. Anne MacDonnell, who has been in charge of non-theatrical distribution in Canada for the past year, is organizing the New York branch. She is expected to remain for approximately two months, at which time a permanent director will be appointed. Loew-Poli Transfers William Brownstein has been transferred as assistant manager of the Loew-Poli theatre in New Haven to the circuit's Springfield house. Harry Morton, who held the post in Springfield, has been transferred to Loew's State in Providence. Metro Crew in Chicago King Vidor and Brian Donlevy with a crew of 40 actors and cameramen are spending two weeks in Chicago on location at the local steel mills for the forthcoming M-G-M film, "America."