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Moviegoers in Tamil Nadu aren’t happy. Over a thousand movie theatres in the state, including both multiplexes and single screens, have pulled down their shutters since the Goods and Services Tax (GST) regime came into force on 1 July.
Not exactly.
Here’s what they are upset about. Taxes up to 58% on movie tickets, in a state where the current price cap for a ticket is Rs 120. Yep, you read that right.
So how did we get to this point?
In May this year, Finance Minister Arun Jaitley had said that the GST would subsume the prevalent entertainment and service taxes and replace it with a single tax.
Here’s how – the state replaced the Tamil Nadu Entertainment Tax Act, 1939, with the Tamil Nadu Local Bodies Entertainment Tax Act, 2017.
“The tax rates remain unchanged at 30%. The companies which were earlier paying tax to the commercial taxes department, will start paying them to the respective local bodies from 1 July”, a senior Greater Chennai Corporation (GCC) official told The New Indian Express.
So what’s the trick you’re missing?
For movie tickets under Rs 100:
And for tickets above Rs 100:
And if you thought a 58% tax was harsh on the movie owners, wait till you hear this.
For years now, the state government has capped movie ticket prices in Tamil Nadu to a maximum of Rs 120. No cinema hall in the state can charge you a single paisa more for a ticket.
So can you really blame Tamil Nadu’s movie theatre owners for going on strike and cancelling all shows till the local body tax of 30% is revoked?
Tamil Nadu's Film Exhibitors Association has demanded that the government allow them to hike prices of movie tickets "reasonably".
Lyricist and writer Madhan Karky tweeted expressing solidarity.
Picture abhi baaki hai, mere dost.
(What’s your take on the tax woes of theatre owners in Tamil Nadu? Comment below and let us know.)
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