Condemning the imposition of the local body tax on Tamil and other regional films, a few Chennai theatres, including the giants like INOX and PVR cinemas, have announced that they will remain closed on Tuesday. The protest came in as the theater owner alleges that this extra local body tax wipe away their margins and also would ‘kill the film industry’.
The owners have also condemned the tax imposition stating that it is against ‘one India, one tax’.
According to a report by The Hindu, INOX said that they will remain close for the day will wait for government’s decision on it. According to a report, INOX has 7 screens across Chennai with a seating capacity of 2,200 people.
Meanwhile, PVR cinemas are also not allowing booking on their website, phone for Tuesday. Reports have claimed that the film federation will be meeting tomorrow to discuss next steps on double taxation issue.
Earlier on September 30, the Greater Chennai Corporation’s Revenue Department (GCCRD) released an order levying entertainment tax on new and old Tamil movies at 10% and 7% respectively. New films in other languages will have to pay a 20% tax while old ones will be charged 14% tax. The order was for theatres located within the limits of the Greater Chennai Corporation. New films in other languages will have to pay a 20% tax while old ones will be charged 14% tax.
This announcement by the Chennai Multiplex owners is being perceived as a huge move, as the Chennai generates a lot of revenue for the Tamil Film Industry and shutting it down for a day may invite massive loses.
According to a KPMG India-FICCI report on the Indian Media and Entertainment Industry 2017, overall, 90% of the total Tamil language domestic box office collection was contributed by the Tamil Nadu market, of which 70% came from Tier I cities such as Chennai, Coimbatore, Madurai and 20% from Tier II and III towns.
The hike comes to wake when the Multiplex Association of India, earlier this year, had requested that all the states that entertainment tax levied by local bodies should be subsumed in the Goods and Services Tax (GST).
The association said that if entertainment tax, levied by local bodies is not subsumed in GST it could lead to double taxation.