The Tamil Film Producers Council on Saturday said they did not approve the proposed shutdown of theatres from Monday in the state, The Hindu reported.
“More than 20 producers, whose films have either released recently or awaiting release, will be gravely affected if there is a shutdown of theatres,” TFPC President Vishal said in a statement. “While we realise that the GST will have a tremendous impact on the industry, we wish the council had been consulted before a decision like this was made. This will be detrimental to the producers.”
Theatre owners in Tamil Nadu had called for the strike from Monday because of lack of clarity on ticket prices after the implementation of the Goods and Services Tax. As per the new tax regime, which came into effect Friday midnight, cinema tickets above Rs 100 will fall under the 28% tax slab. However, according to a recent Ordinance passed by the Tamil Nadu government, theatre owners have to pay 30% entertainment tax to the local body.
President of the Tamil Nadu Theatre Owners and Distributors Association Abhirami Ramanathan explained that the 30% tax is “in addition to the GST rates and on each local body tax, we have to pay an additional 8% GST”. “So the total tax rate is 66% in Tamil Nadu…which is unviable,” he said, adding that they had requested the state government “to clarify by this weekend how much tax amount will be levied on theatre owners”.
Tamil Nadu Finance Minsiter D Jayakumar on Saturday said that Chief Minister Edappadi Palaniswamy will come to a decision soon on whether to impose or do away with the additional 30% tax. The minister had held a meeting with theatre owners, who now seem to be confident that the matter will be resolved, according to The New Indian Express.