With the high cost of equipment needed for film production, producers are finding it difficult to find the funds necessary for producing quality cinema, say film critics in Azerbaijan.
According to the same, the Culture and Tourism Ministry is unwilling to fund projects whose topics are considered inappropriate or not to their liking. This lack of support means that the film industry in Azerbaijan is highly restricted.
Last week, the Culture Committee of the National Assembly put forward an amendment to the customs code which would exempt technical equipment for film making from customs duties and taxies. However, the proposal was not warmly greeted by those involved in cinema in Azerbaijan, many of whom said that the proposed concessions would do little to help the development of the sector.
Some producers even approached the decision with suspicion.
Studios believe that the elimination of customs duties will bring new equipment and techniques to the local market, which will in turn force down rental prices in the local market.
According to analysts, the decision will not lead to a major breakthrough in the field of cinema.
After gaining independence, Azerbaijan has had an increasingly unprofitable local cinema, but in recent years there has been something of a revival with a few commercial films. In general, however, the country still has many problems connected with cinema.
The Offer
This week, parliament’s culture committee discussed amendments to the tax code regarding customs tariff laws.
According to the changes to the law on customs tariffs, cinema equipment, cinema technological equipment and facilities for film imports will be exempted from taxes for a period of 3 years starting from January 1 of 2017.
Further amendments to the tax code will exempt local film makers from having to pay taxes on 50% of their ticket sale earnings for the same period of time.
MP Aghil Abbas, a member of the parliament’s Culture Committee, commented on claims that Azerbaijan’s cinema sector faces large obstacles:
“When filming a movie, does the government hold its hand in front of the camera?” asked Mr Abbas. “My film, Hail, was allocated 1 million 500 thousand in funds,” he adds.
The department head of the Ministry of Culture and Tourism’s cinema sector, Yusif Sheikhov, told BBC Azeri that the proposition to the National Assembly will help the cinema sector. He noted that a large portion of a film’s budget is spent on taxes.
“[With this new law], the film maker’s savings can [be put towards] a new project, or go towards the film’s scenery or costume design”, he said.
Directors Independent of the Government
Director Elvin Adigozal believes that, “the tax benefit nonsense can not aid in the development of cinema. If you want to develop cinema in the country, you should increase cinema funding, become a member of Euroimages, and most importantly, the Ministry of Culture and Tourism shouldn’t be the only instrument for the allocation and control of funds”, he says.
He said the allocation of money to the cinema, as in other developed countries, should be allocated by local and foreign funds.
But today, the Ministry of Culture and Tourism, the governing body of film in the country, “manages and distributes money, whereby creating dependent directors it can influence,” the director noted.
“Cinema is a free profession. If the director becomes subject to the system for the sake of money, cinema is finished. It can’t grow. Today, however, there is no source to find money for free cinema in the country,” said Mr Adigozal. Only a few directors have earned even pennies from other sectors by which to produce their own films.
“We take part in international film festivals and we hope and dream that we can get money in the future from abroad. This is the situation of the cinema in Azerbaijan,” Adigozal said.
The ministry spokesman, Mr Sheikhov, explained why Azerbaijan is not a member of Euroimages:
“Our facilities don’t allow us to enter it. A few years ago, talks were held and we were told our industry is weak and reconstruction work has to be carried out. After this work is complete, we can raise the issue of membership again,” he explained.
Unbridled Censorship
Cinema critic Aygun Aslanova has expressed that it is too early to talk about the proposals, but she noted that higher tax rates result in financial institutions not being able to help the cinema.
“If the tax is removed, maybe independent cinema can develop.” she says.
Aslanova noted that the government institutions intervene and decide which films will make it to the cinemas and which do not. “There is no guideline to how they approve topics and issue absurd demands. They demand some of the scenes be changed.” Film critics call this censorship.
She says that censorship in independent Azerbaijan is the same as it was in the Soviet period.
But Sheikhov does not agree with the view that the Ministry does not generate an opportunity for creative freedom.
“In the last 2-3 years, the films produced by private companies are several times more than government-produced movies. There is no prohibition to filming and showing films. No one interferes with them,” he said.
Joseph Sheikhov says the Culture and Tourism Ministry controls the cinema because there is legislation which requires notification of allocated money. If the screenplay is accepted, then there is no censorship.
“The screenplay is either accepted or not. There is no censorship.”
The Taxes on the Cinema Industry are More Than the Value of the Products
Narimanfilm is a Baku film studio. Executive producer Emin Guluyev says that the cost of customs duties on imported goods exceeds the value of the product.
“Small parts for a camera can cost 1500 euros. When you bring that product here, that price will be jump to 3000 manat”, said the producer.
If the decision to exempt technical equipment from taxation is accepted, it will be important for those working in the field of cinema, he added.
Narimanfilm has been in film production since 1994. The spokesman of the Narimanfilm pointed to the same problem, not only for the rental of technical equipment, but for production companies, too.
He said that his studio wanted to acquire a 50 thousand euro camera, but customs would have meant that the camera would cost twice that much. Because of the tax, they gave up on the idea.
Emin Guliyev also added that the exemption from duties would bring new and better quality cameras, lenses, lights or 3D equipment into the country.
According to him, the tax exemption will make rental prices lower.
“3 years is a good amount of time”
Head of the Baku Film Institute Feruz Shamiyev, considers the National Assembly debate to be necessary in the field of cinema.
“The results will become more apparent after the adoption of the law,” said the film producer. He thinks that within three years without tax and customs duties, the importation of equipment for the release of films is “an important step for the development of cinema”.
He says that there is a good opportunity during this period to increase the quality and quantity of films which will be positively affected by the decision.
“… There will be an increase in the number of domestic films, which means the creation of competition. Competition arises as a result of quality,” said Mr. Shamiyev, calling such competition “well overdue in Azerbaijan.”
Fehruz Shamiyev, the screenwriter of two films, says that during the shooting of his movies, the lack of financing led to low-quality equipment and the inability to secure anything better.
The film producer said he hoped the law would be adopted. If this decision is made, the budget of some companies will allow them to show more interest in film production.
A Change for the Cinema Can Only Come from a Change in the Minds of the People
Film critic Sevda Sultanova says that one cannot expect a boom in the film sector of Azerbaijan until the resolution is adopted.
According to her, the change depends on the attitude of society as a whole towards cinema.
“Everybody knows that in order to produce film in Azerbaijan, the Culture and Tourism Ministry must give financial assistance. However, those who love art can create it in the most difficult circumstances. Therefore, you have to sacrifice,” she says.
You do not need expensive equipment to make a quality film, says Sevda Sultanova, and around the world a lot of famous directors make films on low budgets. The films have a small creative team and minimal conditions, yet create quality movies.
Therefore, the film critic adds, these kinds of decisions are “cosmetic” and that she has no great expectations.
The legislative project has been recommended to the plenary session of the National Assembly and will be discussed on November 11.
