China Earmarks 5% of Box Office to Support Indigenous Cinema

Written by Xinhua on . Posted in Finance

 

A Celebration of Cinese CinemaChina will draw five percent from its annual film box office revenue to supplement a fund designed to support its national cinema, according to a new China government statute. China's box office was worth $250m in2005.

 

"The Special Fund for the National Cinema Development, " the statute says will be used to support the national cinema by lending, rewarding or financing the production of "important China-made feature films."

The statute was issued by the Ministry of Finance and the Publicity Department of the Communist Party of China Central Committee.

"The Ministry of Finance, together with other relevant departments, must improve the management of the former special fund for the cinema and formulate measures to collect and use the new fund," the statute said.

China has been drawing 5 fen (0.625 U.S. cents) from every film ticket sold since 1991. The new requirement will mean four times that amount could be deducted and flow into the fund.

China earned 2 billion yuan (250 million U.S. dollars) of film box office revenue in 2005. A film ticket generally sells for 50 yuan (6.25 U.S. dollars) in China.

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