MUMBAI: The exhibitors of Hindi films and other dubbed films in Andhra Pradesh have a reason to smile. The Supreme Court recently struck down the differential entertainment tax levied by the State government.

The apex court felt that the differential rate of taxation should not be implemented on the basis of language alone. “This is definitely derisive of social attributes of the polity and Article 14 in its basic form — equality before law,” said the Supreme Court bench comprising Justice S.B. Sinha and Justice Markandey Katju while disposing of a writ petition filed by Mr Rajan Sharma, a city-based distributor of Hindi films.

On the other hand the Telugu film producers are worried that a flood of Hindi and dubbed movies would swamp local cinema, especially low budget films.