The Malayalam film industry had some major hits in 2024, such as Aavesham, ARM, Premalu, and Manjummel Boys. However, they faced a significant crisis, with key organizations announcing a complete shutdown starting June 1, 2025. This drastic decision to halt all film-related activities including production and screenings was due to growing financial difficulties caused by high taxes and soaring remunerations of the actors. The announcement was made after a meeting of various film bodies, including the Kerala Film Producers Association (KFPA) and the Film Employees Federation of Kerala (FEFKA). These groups are protesting what they see as unfair taxation and unsustainable costs that are pushing the industry towards collapse. According to Suresh Kumar, a leading producer and president of the Film Chamber of Kerala, the industry is struggling under the weight of both entertainment tax and the Goods and Services Tax (GST) which together amounts to a 30% tax. Producers are also concerned about the increasing salaries demanded by actors.
Actors are charging exorbitant fees which is highly damaging to producers. Even new actors and directors are demanding hefty sums. According to Suresh Kumar, the salaries they request are ten times what the Malayalam film industry can afford. Suresh Kumar believes none of them are showing any commitment to this particular industry. Additionally, the industry has faced significant losses, with only one out of 28 films released in January 2025 being financially successful. The losses for that month alone amounted to Rs 110 crore. It was also mentioned that during the year, 176 Malayalam films failed at the box office. Many technicians are struggling without work, with more than 60 percent of those at the bottom unemployed.
In response, film bodies have decided to suspend all film productions and screenings starting June 1. They are demanding a reduction in entertainment tax and a salary cut for actors. Moving forward, representatives from the film bodies plan to meet with the Kerala Chief Minister Pinarayi Vijayan to present their concerns and demands.
