There has been a lot of controversy surrounding the 30% local body tax which was announced by the Tamil Nadu government. The TNPC President Vishal and TN Theatres Association head Abirami Ramanthan have been in talks with the government to come to a suitable agreement that will benefit the film industry as well as the state government.

Now, there is speculation that straight Tamil films will not be taxed and only films in other languages or dubbed Tamil films will need to pay tax. As for the amount, there is no clarity. One source says that this in fact is most likely the decision that the Tamil Nadu government will announce. However, there is no official confirmation of this.

Ever since GST came into place, the 30% local body tax has become a source of concern for Kollywood. Members of the Tamil film fraternity have been appealing to the state government to come out with a favourable decision as this could kill the film industry.

Cinema halls across Tamil Nadu were shut for a period of four days once the local body tax announcement came in. It led to losses in the tune of crores for the film industry. As of now, the film industry and the audience are waiting for a favourable decision. There was a rumour that the government would make an announcement on July 28. Some say that the announcement on the tax issue could come on August 1.