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The Tamil Nadu government will take a decision on the levy of local body tax on Tamil films tomorrow, say industry leaders. The industry will meet Chief Minister Edappadi K Palaniswami to discuss the issue.
The film fraternity met the Tamil Nadu Information and Publicity Minister Kadambur Raju and Minister for Muncipal Administration SP Velumani today, but there was no resolution. Tirupur Subramani, a Coimbatore-based distributor and the panel coordinator, said the industry will get a resolution regarding the double taxation issue tomorrow after meeting the CM.
Protest by cinemasThe Tamil Nadu government had levied a 10 per cent entertainment tax on Tamil movies and 20 per cent on other language movies over and above the Goods and Services Tax. Following this, theatres in Tamil Nadu decided not to screen Diwali movie releases in the State. Multiplex Association of India (MAI) theatres in Chennai downed their shutters to protest the levy of local body tax.
In addition, the State government hiked the theatre prices by 25 per cent with the maximum ticket price of ₹160 in multiplexes and minimum of ₹50 on October 7. Subramani explained that even if the price hike offsets the local body tax, getting enough audience will be difficult as prices will be too high. “It will have an impact on the theatre revenue,” he added.
Price higherTamil Nadu has a robust movie-going population compared to other States as it enjoys a price cap of ₹120 on a ticket. Post-GST, ticket cost increased to ₹183, inclusive of 28 per cent GST.
But, if the local body tax is included, the ticket prices would go as high as ₹234.80. This is high compared to other cities such as Bengaluru, Mumbai and New Delhi. For instance, for a premium ticket, it costs about ₹200 in New Delhi and ₹222 in Bengaluru.
In Mumbai, while tickets are as cheap as ₹100 on weekdays, during weekends, it could go over ₹500 due to flexible pricing based on demand.
Theatre owners fear that the huge increase will affect the profitability and make the business non-viable.
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