3 factors killing PNG’s Filming Potential

By Matthew Vari

Sunday, May 31, 2015 (Sunday Weekly Magazine, PNG)

With the increased economic gains the country has reported over the past 10 year- one sector, the film industry, has not been fully utilized and recognized as a major potential contributor to the national purse.

Three factors identified by local actors that have benefited from the film industry have been the tax charges placed on filmmakers and other costs such as airfares and accommodation in the country.

One local actor involved with a couple of films shot both in the country and overseas said that Tax, Airfares, and Accommodation rates are high up to the roof, which are scaring film makers- adding that if the government gives incentives like discounts for filmmakers, the sector will grow.

“If we want to drive the industry we have to lower the tax- the other thing we, here in the country, like to give the film makers the runaround that even they come through a customs broker, we try to tax them on very little things like batteries, tripods, because the reason is that they will use them here,” the local actor said.

“We end up collecting like K700,000 to K800,000 destroying the potential for the industry.”

“That is why we keep scaring them off because time is money and they have very tight schedules to meets with a budget.”

He said that big films were okay in most cases, but smaller films get hit hard with the unplanned expenses they meet when they arrive.

“Through our institutions like National Film Institute that could make an effort to have those taxes wavered before they come in we will have a lot of films,” the local actor added.

“You have payments from the airports to transport, to actors, to location payments, everybody at the end they benefit from at least some part of that money along the way.”

“Once we solve these problems all talk of Hollywood will be heavily charged on every piece of equipment. At the end of filming you will realize that the budget you pay to the government is more higher than the budget to make the film.”

He said that is the case with filmmakers now going to countries like Malaysia to pay less tax.

“Malaysia, there are reductions on tax for what are called Biscuit films, that bring in income, so they give tax incentives where all taxes were cut for bringing in money into the local economy.

“They (Malaysian Government) then tax the hotel, the hire car company and this is attracting a lot of people to Malaysia.”

“If the government sits down and seriously removes these barriers we have the location they are looking for and everything.”

He pointed out that even places like New Zealand are benefiting from such incentives, making reference to the films Kokoda that was done in Cairns, Australia and Jungle Child. Which was filmed in Malaysia as perfect examples.

“The film Mr Pip was shot in Bougainville through the Autonomous Government and they did not pay much- they only had to pay for the location and shooting of the film.”