GST to impact Tamil cinema, theater owners in confusion
Synopsis
It is feared that the GST would limit people from coming to theatres The central government has reduced the tax from 28% to 18% for the tickets up to Rs.100. It would remain the same for tickets above Rs.100.
The implementation of GST has created a great confusion among the theatre owners and hence the sale of tickets is stopped for tomorrow. The GST would come into effect from tomorrow, i.e.,July 1.
It is considered to be the greatest tax reform revolution. GST stands for Goods and Services Tax.
GST would replace kalal tax, service tax, value added tax and other local taxes. The entire country would follow one universal taxation method.
Earlier, actor-filmmaker Kamal Haasan had said that the 28 per cent tax would ruin regional cinema. Serving his and other film personnel’s requests, the central government has reduced the tax from 28% to 18% for tickets up to Rs.100. It would remain the same for the tickets above Rs.100.
Due to GST, the costs of tickets are increased. 28% GST would be added to the cost of the ticket. For example, in the case of Rs.120 ticket, one would need to pay Rs.153.60.
There is an expectation wondering if the theatre owners would reduce the cost to Rs.100 because in that case one can pay only 18% of the tax.
It is feared that the GST would limit people from coming to theatres. The theatres are already paying a 30% tax to the corporation. The theatre owners say that they could lessen the cost of tickets only when they are exempted from this corporation tax.
The South Indian Film Association has issued a report. It states, “Regional language movies should be exempted from this tax. Except those, all other movies could be charged with the tax. GST would affect lakhs of people in the film industry. Hence we request the central government to reconsider this.”
Meanwhile, the theatre owners are in great confusion in fixing the price for the tickets. They are perplexed as they have not received any word from the state government with regards to this. Reservation of tickets has been with held.
It is said that an official statement would be made by this evening.