TN theatres shut down indefinitely in protest against heavy tax

More than 1,000 movie theatres, including multiplexes in Tamil Nadu, downed their shutters on Monday  in response to an indefinite strike call by the state’s Film Chamber of Commerce (FCC) in protest against the heavy tax levy under Goods and Services Tax (GST).

FCC president Abirami Ramanathan said that all the movie halls will remain closed indefinitely till the government clarifies on the tax burden on theatre owners under GST.

Ramanathan met Tamil Nadu Chief Minister Edappadi K Palaniswami and Finance Minister D Jayakumar and submitted a memorandum seeking explanation from the state Government on the tax component.

The federation claims that the state government is planning  to collect municipal taxes separately on cinema halls after the implementation of GST.

After GST launch, theatres selling tickets priced below Rs 100 should pay 18% tax and theatres, particularly multiplexes which price tickets above Rs 100, should pay 28% tax.

Ramanathan said that if the state government imposes local taxes, the theatre owners would have to pay more than 50% of the ticket price as tax (inclusive of GST).