Cinema Theaters shut down in Tamil Nadu

Posted July 04, 2017

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.

Ramanathan, who had met Chief Minister Edappadi K. Palaniswami on July 1 and submitted a memorandum to him in this regard, today met Finance Minister D. Jayakumar and urged him to take steps to abolish the municipal tax on cinema theatres as it poses a heavy burden on them in view of the GST roll out.

The GST rate for regional film sis 28% for tickets above Rs.100 and 18% for tickets up to Rs.100.

Ramanathan said that if the state government imposes local taxes, the theatre owners would have to pay more than 50% of the ticket price as tax (inclusive of GST).

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Around 10 lakh individual earn their livelihood from the film business in Tamil Nadu. This is in addition to the GST rates. The film was released just three days ago and the opening week plays a major role in recovering the investment.

Going to the movies is such an important part of public life in Tamil Nadu that, for many years, the state's political elite have been alumni of its hugely popular film industry. It becomes Rs 130 if the 30 per cent local body tax is added.

"Plainly speaking, the Tamil Nadu politicians are threatening us".

Director Shankar, whose movie Enthiran 2.0 will be released in 2018, tweeted: "48-58 per cent is too much tax".

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As the entertainment tax levied by local bodies will not be subsumed by the GST. "They announced the strike without prior notice", Kannan said.

On Sunday Tamil Films Producers Council president Vishal, on behalf of the effected producers asked the theater owners to cancel or differ the strike at least by a weak.

As a response to this Tamil Nadu Cinema Theater Owners Federation president Abitami Ramanathan stated "We have heard the pleas of the affected producers, we will discuss what needs to be done". This local body entertainment tax is hurting the industry. "You can not bring a Monoculture into a country like India", Kamal Haasan said. They (both AIADMK and DMK) have been using the Entertainment Tax as a method to control the film industry.

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