Cinema theatres shut down in TN enters second day

Cinema theatres shut down in TN enters second day


Cinema theatres shut down in TN enters second day


Chennai:  The indefinite closure of about 1,000 cinema theatres, including multiplexes, in Tamil Nadu entered the second day today. The indefinite shut down was called by the Tamil Nadu Film Chamber of Commerce to protest against 18 per cent GST levy and to urge the State government to abolish the local taxes. Chamber President Abirami Ramanathan said that the agitation was not against the Central or Tamil Nadu governments, but to demand for withdrawal of the local taxes. Mr Ramanathan, who had met Chief Minister Edappadi K Palaniswami on July one and submitted a memorandum to him in this regard, yesterday met Finance Minister D Jayakumar and urged him to take steps to abolish the municipal tax on cinema theatres as it poses a heavy burden on them in view of the GST roll out. Mr Jayakumar said since a decision has to be taken at the policy level, he would hold discussions with the Chief Minister and take a good decision on the issue. Post GST, the State government's plan to collect municipal taxes separately from cinema halls. According to the GST roll out, theatres which sell tickets below Rs 100 should pay 18 per cent tax and theatres, especially multiplexes which sell tickets above Rs 100, should pay 28 per cent tax. If the State entertainment tax is added to this, theatre owners should pay 53 per cent of the ticket rate as tax to the government. 'If entertainment tax is added to 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', Ramanathan said. Mr Ramanathan said in States like Kerala and Karnataka there was no local tax.

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