The Film Board of Trade (China> was formed last August in Shanghai with Columbia Picture, Fox, Paramount Metro-Goldwyn-Mayer.
O-Radio, United Artists, Universal, and Warner Brothers as members. The object is to protect the contract rights of distributors and exhibitors of American films, The present dis pute is between the Canton Guild the Hongkong branch of the Film Board of Trade.
'The payment in business tax required by the Provincial Department of Finance is Canton $13. Mex. $10 for every $1,000 business. 'The American firn producers said that they are already' sharing the stamp tax and cinema tax and can-hot be expected to pay further tax. Their' contract is Dased on 30. 60 per cent. of the tox office receipts after deducting the two taxes.
Th the meantime the Canton theatres have to shoulder the entire burden in paying this tax. Owing to the good demand of American ims anton, several of the frst-run theatres find it worthwhile to show mostly Hollywood productions.
taking a great interest in this issue Foreign firms in South China are og it involves the payment of buslness tax. No foreign firm has pald this tax, although pressure is exerted by the Provincial Department of Finance to. obtain payment. Tt believed in' foreign commercial circles here that if the local foreign istrfoutors pay the business tax, this would establish a precedent for the paying of this levy by all other foreign firms.
Text read from the printed page and cleaned; old type leaves the occasional error.