Amid GST celebrations in the country, Chennai theatre owners announce indefinite shutdown from July 3

The Tamil Nadu Film Chamber of Commerce has announced an indefinite shutdown of theatres from July 3 due to lack of clarity on the tax amount that will be levied after GST implementation

By: Fukres |
July 1, 2017 11:05 am

The much-awaited Goods and Services Tax (GST) was launched at a gala event in mid-night on June 30. Prime Minister Narendra Modi and President Pranab Mukherjee launched the GST from the historic Central Hall of Parliament. GST, touted to be India’s biggest tax reform since independence, but the Tamil Nadu Film Chamber of Commerce has announced an indefinite shutdown of theatres across Tamil Nadu from July 3 due to lack of clarity on the tax amount that will be levied after GST implementation.

The Goods and Services Tax (GST) comes into effect from Saturday, July 1. The government has announced a GST rate of 28 per cent on cinema tickets above Rs 100. Multiplexes in the city are yet to open bookings for weekend movies as they are unsure if the government would levy entertainment tax over GST.

The President of the Tamil Nadu Film Chamber of Commerce, Abirami Ramanathan said, “The state government should clear the confusion (on how much tax amount theatre owners will be charged) over the weekend. From Monday, all shows across theatres in the state will be suspended.”

Also read: GST rollout: Top 5 quotes by PM Narendra Modi and President Pranab Mukherjee

“If entertainment tax is added on top of GST, we will be forced to pay 53 per cent of the ticket rate as tax to the government. It won’t be feasible for us as it will affect the livelihood of over 10 lakh families associated with the industry,” he said.

Earlier, veteran actor Kamal Haasan opposed the GST Bill in the entertainment industry. Haasan said the new bill would affect the regional cinema. Khassan had also threatened he would leave cinema if the proposed decision to implement 28% GST on film industry is not brought down to 12-18%.

“We wholeheartedly welcome GST and One India, One Tax. But the current rate needs to be revised, otherwise, it will run regional cinema. At the present rate, I can’t afford the tax and I’ll be forced to quit. We should remember this is not East India Company,” Kamal said.

According to the GST experts, it might turn out to be a boon for cinema owners since their profit margin might shoot up. The ticket prices theatres of cities like Mumbai, Delhi, Bangalore is also expected to come down since the additional taxes would be done away with.

GST has the potential to take the entertainment industry to another level. But, Kamal Hassan doesn’t seem quite impressed with it.

Also read: Prices after GST: Here’s what may get cheaper and costlier from July 1

Inputs– IANS

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