Theatres shut down in Tamil Nadu over double taxation

Theatres shut down in Tamil Nadu over double taxation

The producers did try to resolve the impasse and tried to persuade these cinema hall owners not to go on a strike, however, that didn't help.

If the State entertainment tax is added to this, theatre owners should pay 53 per cent of the ticket rate as tax to the government. And on each local body tax, we have to pay an additional 8% GST. After a meeting with finance minister D.Jayakumar, Abirami Ramanathan, president of Tamil Nadu Theatre Owners and Distributors Association said the minister has assured to solve the issue after holding discussion with chief minister Edappadi K Palaniswamy. He said, "They announced the strike without prior notice". The GST, which mainly aimed to eliminate the tax-on-tax structure now has the Tamil Nadu film industry on its knees.

Ms. Ramanathan Said "If we screen movies, we have to pay local body taxes immediately as it came into force from yesterday. We hope and pray the TN government gives us the lifeline we so badly need".

The GST is fixed at 18% for tickets priced up to Rs 100 and 28% for tickets priced above Rs 100.

However, GST will make India one with its conventional procedures and rate taxes.

Though Tamil Film Producers Council President Vishal has been trying his best to smoothly resolve the situation, the theatre owners have been unwilling to compromise.

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The government order available with India Today shows that on June 28, it was passed converting the Entertainment Tax to local body tax at 30 per cent on movies releasing in the state.

It is not just the film industry that is under stress in the southern state.

The Tamil Nadu government had a committee waiving off Entertainment Tax if the movie was titled in Tamil and had a U certificate.

" It won't be feasible for us as it will affect the livelihood of over 10 lakh families associated with the industry", Ramanathan said.

GST taxes items classed as "luxury" goods more highly, and the classification system has sparked controversy among traders.

Reacting on the double taxation by the state, Haasan said in a statement: "Filmmaking has been made hard deliberately". Thousands of textile traders around the country are on strike to protest new charges under GST.

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