02 July, 2017
The Tamil Nadu Cinema Theatre Owners Federation on Friday announced that cinema halls wouldn't screen films starting Monday, in protest of the addition of a 30 per cent municipal tax to the Goods and Services Tax (GST), a Puthiya Thalaimurai report said.
Tamil Nadu theatres will be halting advance bookings of tickets from Sunday and all shows across the state's theatres will be suspended starting next week, with film theatre associations demanding a roll back of the municipal tax.
Tamil Nadu film industry on Saturday once again requested the Centre to put regional cinema in the lowest slab of newly implemented Goods and Services Tax.
Therefore, to protest against this ruling, the theatre owners have made a decision to shut shop and all over Tamil Nadu theatres would remain closed from Monday.
With the state government not giving clarity on the implementation of GST, the fear of dual taxation has led Kollywood to go on a strike. The Finance Minister said that the State would be organising a number of awareness programmes regarding GST, which would be held in all districts and zonal regions. About 10 lakh technicians and artists depend on the film trade for their livelihood.
Early June, actor Kamal Haasan also supported regional film industry's demand that GST reduced to 12% from 28% tax bracket.
With the new GST in place, ticket prices are set to increase by 28% and this has caused a stir in the film industry and among exhibitors. This is exorbitant and we can not run with this tax structure. But the current rate needs to be revised, otherwise, it will run regional cinema. "In the next Council meeting we will raise those issues", he said.
According to the GST experts, it might turn out to be a boon for cinema owners since their profit margin might shoot up.
GST has the potential to take the entertainment industry to another level.