The Tamil Film Producers Council has announced that no new Tamil films will be released on October 6 as a mark of protest against the Tamil Nadu government’s decision to impose an entertainment tax of 10% on upcoming Tamil films and 20% on non-Tamil productions. This will be over and above the Goods and Services Tax.
There are reports that the council’s boycott will also be supported by a few Bollywood and Hollywood studios, who will not be releasing films in Tamil Nadu during the weekend. The Multiplex Association of India too is supporting the strike, reported India Today. “MAI believes that this levy of LBET by the Chennai Corporation leads to double taxation on an industry which is already reeling under the impact of high tax rates and piracy, and could well sound the death knell of the film industry,” said the publication.
Bollywood producers were already planning to appeal to the Tamil Nadu government to withdraw the imposition of the local body tax.
Earlier in July, the Tamil Nadu Theatre Owners and Distributors Association had protested against the 30% municipal tax imposed on tickets over and above GST. The strike was called off after a committee was formed by the government to examine the issue.