TN theatres remain close for 2nd day; incurs Rs 25 Cr loss
Synopsis
The imposition of 30 percent local body tax in addition to GST has lead to the closure of Tamil Nadu theatres. Industry sources said about Rs 20-25 Crore losses were incurred so far after closure of theatres for two consecutive days.
Nearly 1,000 cinema halls across Tamil Nadu today remained shut for the second consecutive day protesting the imposition of 30 percent local body tax in addition to GST even as the issue figured in the assembly.
Industry sources said about Rs 20-25 Crore losses were incurred so far. An industry representative, speaking on the condition of anonymity, told PTI that they had discussed the matter with the state government yesterday.
"We were told that discussions would continue today. We are awaiting a decision from the government," said the anonymous source. The issue figured in the state assembly with the opposition raising it.
DMK Leader Durai Murugan asked "They (Cinema industry representatives) had met the Chief Minister (K Palaniswami) yesterday, but still theatres are shut. Why?"
Congress Legislature Party leader K R Ramasamy has also raised the issue. Municipal Administration Minister S P Velumani assured that the government would give due consideration to problems of all sections of people. "Talks are going on," he said.
Going ahead with their strike announced on June 30 on the eve of the Goods and Services Tax (GST) rollout, the exhibitors have shut their theatre halls since yesterday citing their 'inability' to pay heavy taxes.
Besides the local tax, a GST of 18 per cent has been fixed for tickets priced below Rs 100 and 28 per cent for those above Rs 100.
"We are against the Corporation (entertainment) Tax which is 30 per cent. This is in addition to the GST rates (of up to 28 percent). We are not against the GST. We welcome it," Tamil Nadu Theatre Owners and Distributors Association President Abhirami Ramanathan had said.
Representatives of the Association and others, including South Indian Film Chamber of Commerce, South Indian Artistes' Association (SIAA) and Tamil Film Producers Council, had met Palaniswami over the tax issue.
They had also met state Finance Minister D Jayakumar, who had assured them that the government was with them and the matter required a decision at the policy level.
Expressing solidarity, city-based exhibitor AGS Cinemas Chief Executive Officer Archana Kalpathi today said their cinema halls would be closed concerning the decision taken by the association.
"We comply with the decision made by the film Chamber Association. AGS Cinemas will be closed across all locations," said Kalpathi in a tweet.
"Collectively our industry has been floundering for many years. We hope and pray the TN government gives us the lifeline we desperately need," she added.