No high notes this New Year

With a fresh set of heavy taxes on live performances, city hotels are considering giving DJs and musicians a miss for New year galas

This New Year may begin on an off-key note for those who like their music live.



As most five star hotels in the city cast out live musicians and pianists owing to the high entertainment tax, many hotels and pubs are in a fix over whether to hire live performers for New Year gigs at all.

Fighting shy of live

The Hotel and Restaurant Association, Western India, a body of hotels and restaurants, with many five star hotels as its members, thinks this New Year is going to be, in the words of its secretary, 'a huge flop'.

Said Gurbaxish Singh Kohli, honorable secretary, HRA, "We are getting calls from the member hotels, asking how they should plan their New Year: whether they should get live performers and DJs at all as part of the celebrations."

Given the uncertainty of the tax, HRA has advised the enquirers to have live celebrations only at their own risk. "Hotels may end up spending more than they plan to, as the tax structure is uncertain," he said, adding, "This New Year will be a big flop because the entertainment tax has led many to cancel live performances."

As reported by MiD DAY ('Pub-hopping? Not with the taxes: Pub owners', October 25) many pubs and bars were contemplating shutting down if the entertainment tax structure is continued with. HRA had written to the former revenue minister, Narayan Rane, asking for rebate.

Musicians sacked

With the new tax in place, hotels are kicking out many performers on their roll before the new year sets in. Recently, a five star hotel in South Mumbai sacked nine musicians because they could not afford to keep them on with the new entertainment tax.
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Another five star hotel in Bandra has either cast out or has not renewed the contracts of all their eight musicians.

Speaking to MiD DAY, Nikhil Pritto, solo pianist and a cancer patient who has been playing at Chambers Lounge of Taj Mahal Palace Hotel in Colaba for six years, said that last week the hotel informed him that his contract, which expires on December 31, will not be renewed.

The letter, a copy of which is with MiD DAY, states that the recent entertainment tax imposed by the Central government this August has compelled them to take the step.

"But the hotel is also left with no option. Why will they hire so many artists? For approximately 12 artists, the hotel has to pay almost Rs 24 lakh in the way of entertainment tax.

They are right on their part, but what about us? Government needs to understand that music will die if such heavy taxes are imposed on hotels," Pritto added.

Pritto's colleague Lindsay, a pianist who plays at Shamiana at the Taj, fears that the recent tax structure might affect him sooner or later. "We want the government to wake up before it is too late. Various licenses are already acquired to perform, then why one more?" he said.

An artist who used to perform at a five star hotel in Andheri was booted out for similar reasons. "In September I was asked by the hotel to leave. They said they couldn't afford me," he said.u00a0

Rosette Furtado, a singer who freelances at Taj Lands End hotel in Bandra, can see his business winding down. "I used to perform 20 shows a month but with recent entertainment tax I perform only 4 shows a month.
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Government needs to immediately react over it before the industry dies," Furtado said.

Facebook campaign

Sharon Menzes, singer and lecturer, has started a facebook campaign 'Pls don't kill live music' appealing to people and the government to support musicians in the face of their plight.

"It is absolutely unfair. It will be the worst for the one whose bread and butter depends upon the number of shows they perform," said Menzes. She added that people should join the campaign if they don't want live music to die.

Offline, there is remonstration as well. Some musicians, along with Indian Musical Merchants Association (IMMA), launched a signature campaign against the tax structure, which they plan to send to the Revenue Minister Balasaheb Thorat, requesting him to scrap the entire tax.

One of the pioneers of the campaign, Ernest Flanagan, was given the elbow by a five star hotel that cancelled his gig at the last moment, saying they could not afford it with the new taxes.

"The government needs to look into the matter before artists like us turn to alternative professions. Moreover, they are not yet clear about whom the law applies to, whether they are targeting DJs or live musicians or more. They need to get clear," said Flanagan, who plays piano at a caf ufffd in BKC.

Career change
Calvin Sequeira is one among many to have given up a career in music to become a teacher. "Long back I was asked to leave due to growing taxes on the industry. I am now teaching music and looking at the recent tax structure. It will be difficult for me to convince the new generation to enter this profession," said Sequeira.
Benjamin D'Souza who performs solo at private dos fears losing his job. "You never know when the government decides to enforce this rule on private performance. We fear losing contracts this year."

Celebspeak
I think musicians should meet with the government and get their grievances addressed. We expect the same from the government to understand their problems before the industry loses their best musicians. An amendment in the law is required urgently.
Ad man and lyricistu00a0Prasoon Joshi

Taxes on pubs
Bombay Entertainment Duty, 2010 (per month): Permit rooms, beer bars with orchestra: Rs 50,000
Pubs other than those in five star hotels: Rs 1 lakh
Pubs in five star hotels: Rs 2 lakh
Other existing taxes on pubs and restaurants:
Charges collected by the police department per live performance: Rs 15,000
Charges collected by the BMC per year: Rs 15,000
Licence charges collected by the police department: u00a0Rs 7,500
Charges for performances per year: Rs 1,80,000
Excise fees per year (liquor):u00a0 Rs 3,55,000

Bombay Entertainment Duty, 2010

Rs2 Lakh
Monthly charges for pubs in 5-star hotels

Rs 50,000
Charges for permit rooms, beer bars with orchestra

Rs 1 Lakh
Monthly charges for pubs other than those in 5-star hotels

Rs 1.8 Lakh
Annual charges for live performances