The Malayalam film industry has given some of the biggest hits of 2024, including “Aavesham”, “Arm”, “Premalu” and “Manjummel Boys”. However, they faced a major crisis with a major organization that announced a complete closure from June 1, 2025. This dramatic decision to halt all film-related activities, including production and screening, has addressed the growing financial difficulties caused by high taxes and rising prices for actors.
The announcement came after meetings of various film organizations, including the Kerala Film Producers Association (KFPA) and the Federated Employees of Kerala (FEFKA). These groups are protesting what they view as unfair taxation and unsustainable costs that are turning the industry towards collapse.
According to G. Suresh Kumar, a leading producer and president of Kerala movie rooms, the industry is struggling with both the weight of entertainment tax and the goods and services tax (GST). He pointed out that the Malayalam film industry is taxed at 30%, and includes GST in addition to additional entertainment tax. He argued that the government should withdraw it via this tax.
Producers are also concerned about the increased pay demands of actors. Suresh Kumar said 60% of the film’s cost is being dominated by the actors. This is extremely harmful to producers. He added that even new actors and directors are charging large fees. According to Suresh Kumar, the reward they demand is ten times the Malayalam movies can afford. He doesn’t think any of them show a commitment to this one industry.
In addition to this issue, Suresh Kumar highlighted the industry suffered significant losses. It highlighted that only one of the 28 films released in January 2025 was financially successful. The loss for that month alone was a total of 110 Rs. He also said in calendar year, 176 Malayalam films were bombed at the box office. He also said many technicians are hungry for their homes. More than 60% of the lower technicians are unemployed. The film group has decided to suspend all filming and screenings of the film from June 1st. They demand entertainment tax relaxation and reduced pay by actors.
Looking ahead, the film group representatives plan to present concerns and demands to meet Kerala Prime Minister Pinarai Vijayan.
