In July, following the Tamil Nadu government's announcement to levy 30 percent of entertainment tax over the newly implemented GST rate of 28 per cent, Kollywood came to a standstill as the Tamil Nadu Film Chamber of Commerce made a decision to shut down theatres.
The Tamil Nadu Film Producers' Council has chose to hold off new releases this festive season in protest against the Tamil Nadu government's decision to impose an additional local body tax of 20 percent and 10 percent on non-Tamil films and Tamil films, respectively.
Later in the evening, he said in a statement, "Various stakeholders have been explaining our position to the State government. Without regulating the ticket price, imposing 10% local body entertainment tax will continue to cause huge loss and confusion to producers", read the statement from the TFPC, they have also requested TN Government to completely remove the additional tax above GST. They opened only after the government said it would form a panel to look into their demands.
Mr. Deepak Asher, President of the Multiplex Association of India, said, "The film industry, already reeling under a 28% GST - the highest slab - can not afford to bear the burden of additional local body entertainment tax".
On Tuesday, the Multiplexes Association of India (MAI) directed multiplexes such as PVR and INOX here to shut shop against double taxation.
The Greater Chennai Revenue Department has ordered levying of 10 per cent entertainment tax on Tamil films and 20 per cent on Other Language Films (OLF), over and above the 28 per cent GST.
By industry estimates, every multiplex property stands to lose around Rs 6 lakh per day for everyday it remains closed.