Chennai sources have made a statement that at least around 1,100 theatres in Tamilnadu had stopped screening films today to protest the state government's decision to impose a 30% municipal body tax on cinema halls. The film industry producers are also against this move and they too will be facing tough times in many situations.
According to sources the theatre owners have stated that the new municipal tax
will further burden their revenue that will be strained following the
implementation of GST or Goods and Services tax from Saturday. Meanwhile with
the addition of the 28% tax under GST, movie theatres will now have to part
with up to 60% of their ticket sales as tax.
Moreover Nikilesh Surya, Executive Director of Rohini Silver Screens stated that they can't survive with 60% as tax and added that when they raise the ticket price the consumer will be hit as they have scrapped this completely in Kerala, Andhra, Telangana and West Bengal and theater owners are clearly seeing the GST as government's clever move to make up their losses.
