Information and Broadcasting Minister Ravi Shankar Prasad on Monday favoured a memorandum of understanding between the entertainment industries of Pakistan and India, even as he called for lowering of entertainment tax with a 45 per cent ceiling and making India the hub of world film industry.

"The geographical closeness between the two countries should be utilised for the creative well-being of both the nations," Prasad said in his inaugural address at the FICCI Frames 2004 convention in Mumbai.
 
Talking about crossover entertainment from the neighbouring country, he cited the examples of Praveen Babi, Adnan Sami and Gulam Ali, and suggested that there would be demand for Lata (Mangeshkar) in Pakistan.

Prasad also called for lowering of entertainment tax in the country, stating that it hovered at different levels in various states of India.

In some of the states, the tax hovers at around 25-35 per cent, while in certain other places it is over 55 per cent, Prasad said, adding uniformity was the need of the hour.

The minister said the government intends to make India the destination of filmmaking in the world by liberalising policies to enable shooting of foreign films in the country.

Prasad said Goa was an ideal location for shooting of movies in India and with international film festival to be in that state this year; it would get a much-needed global attention.

He also called for venture capital funding in film production and said a panel would be mooted to look into this.

India is a liberal state and with intentions to permit 10 per cent foreign direct investments in films entertainment and animation, VC funding will find root in the Indian entertainment sector, Prasad said.