The Tamil Nadu government has imposed entertainment tax of 10% on upcoming Tamil films and 20% on non-Tamil productions, over and above the Goods and Services Tax. The move has led to disappointed reactions from the Hindi film industry, who has decided to appeal to the Tamil Nadu government against the order, reported the DNA newspaper.
“Today, TN has levied this tax and if we don’t object, other states like Rajasthan, Bengal and Andhra Pradesh will do the same,” Hindi film producer Ramesh Sippy told the newspaper. “We don’t need to look at the value but as a principle, we cannot allow this to happen to us.’’
According to a notice issued by the revenue department of the Greater Chennai Corporation, the levy came into effect from September 27. A report by The Hindu stated that the tax is within the cap of Rs 120 per ticket and is applicable to 168 theatres within city limits. “What has happened is unfair to us and we’ll be making a representation to the TN government soon,’’ producer Ramesh Taurani told DNA.
The Tamil film industry joined the Bollywood fraternity in bemoaning the order. “This is a serious concern and the industry cannot survive with an additional tax being imposed,” Tamil actor and producer Vishal told The Hindu.
Earlier in July, the Tamil Nadu Theatre Owners and Distributors Association had gone on strike to protest the 30% municipal tax imposed on tickets over and above GST. The strike was called off after an eight-member committee was formed to study the issue.