Presenting his 1998-99 budget in the Lok Sabha, Finance Minister Yashwant Sinha proposed to reduce the time allowed for full amortisation of the cost incurred on production or acquisition of distribution rights of films from 180 days to 90 days. This would enable the film industry to recoup the cost of film production and distribution. It would also prevent a threat of video piracy and cable television, he said.

Under the existing rules, if a film is released on commercial basis, at least 180 days before the end of the previous year, full amortisation of the cost incurred on production or acquisition of distribution rights of film is allowed in the year of release itself. If the film is released later, full amortisation is not allowed in that year.