Aug. 24/26 Continued...

4. In an attempt to revive the struggling Iranian film industry under the leadership of Mohammed Khatami they banned the commercial distribution of videocassettes. By banning the commercial distribution of videocassettes it would reduce the amount of foreign films being sold and shown in Iran, and it would encourage the growth of the domestic film industry. The Iranian government also reduced the municipal tax for showing Iranian films from 15% to 5% and raising the tax for showing foreign films from 20% to 25% encouraging the "circulation of national productions."

5. Domestic audiences for Iranian films rose due to the tax incentives provided by the government, the government ban of certain foreign films, the reopening of some cinemas after the revolution, and the steady increase of domestic productions.