1000 cinemas shut down in Tamil Nadu in protest against GST

1000 cinemas shut down in Tamil Nadu in protest against GST

Actor-filmmaker Kamal Haasan on Monday said filmmaking in Tamil Nadu has been made hard deliberately following the government's decision to levy 30 per cent entertainment tax over and above the newly implemented GST. The theatre owners made a decision to cancel all the shows from 3rd of July after the state government imposed 30 percent entertainment tax.

Ramanathan met Tamil Nadu Chief Minister Edappadi K Palaniswami and Finance Minister D Jayakumar and submitted a memorandum seeking explanation from the state Government on the tax component.

The Goods and Services Tax came into effect from 1 July.

According to the GST roll-out, theatres which sell tickets below Rs 100 should pay 18 per cent tax and theatres, especially multiplexes, which sell tickets above Rs 100, should pay 28 per cent tax. Tamil Nadu's film fraternity has criticized the state government for failing to withdraw additional taxes, as other states, including neighboring Kerala, have done.

More than one thousand cinema halls are shut in Tamil Nadu.

ALSO READ: GST Council cuts tax rate on gold jewellery making charges to 5%.

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The GST subsumes more than a dozen central and local levies. The film was released just three days ago and the opening week plays a major role in recovering the investment. Director R Kannan of this movie tweeted "They announced the strike without prior notice, how will I pay back loans I took to make this film?" "We want the Tamil Nadu government to withdraw it too". Now, the dual taxation with a cap on movie tickets means 48-58 percent of a film's revenue will be collected as taxes leaving peanuts for the distributors and exhibitors.

"The theatres have to pay a 30% tax to the local body".

"We have requested the government to fix a threshold within which we should be allowed to either increase or cut down ticket prices as per the need", the report quoted Ramanathan.

Actor-filmmaker Kamal Haasan said the industry would speak with "one voice" on the decision. This local body entertainment tax is hurting the industry.

Mumbai: While the implementation of GST has affected multiple sectors across consumer strata, the entertainment industry has been bearing the brunt as well, with a staggering 30% taxation forced onto it.

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