The Tamil Nadu Film Producers Council on Wednesday said no new Tamil films will release on Friday onwards until the state government removes the additional 10 per cent tax over and above the GST.
In a statement, President of the Producers Council Vishal said: “We will have a meeting today (Wednesday) to discuss the next course of action.
“No new Tamil films will release this week as we feel the additional 10 per cent Local Body Entertainment Tax (LBET) above the Goods and Services Tax will disable the industry.”
On Tuesday, the Multiplexes Association of India (MAI) directed multiplexes such as PVR and INOX here to shut shop against double taxation.
“All multiplexes operating in Chennai have announced that they are going on strike starting today (Wednesday),” read a statement from MAI.
According to the statement, the double taxation defeats the purpose of the GST model and goes against the principle of One Nation One Tax.
MAI President Deepak Asher appealed to the Tamil Nadu Chief Minister K. Palaniswani and Great Chennai Corporation (GCC) Commissioner to consider their request to withdraw the LBET levied on the film exhibition industry in Chennai immediately. “We believe such withdrawal will ensure the survival of the film industry and will support an environment of safe, secure and wholesome entertainment option for the population of Chennai. On the other hand, continuance of an LBET in addition to GST will render cinema exhibition unviable and will eventually kill the film industry,” Asher said.
Vishal said they were ready to go on indefinite strike if the government did not consider their request.
“Various stakeholders have already explained their situation to the government. Unfortunately, 10 per cent tax has been levied without regulating the ticket prices.
“This will only increase the losses for the producers and pave way to more confusion,” Vishal added.
Even the Producers Guild of India affirmed its support to the decision of the multiplex cinema chains in Chennai.
Recommended
Siddharth Roy Kapur, President of the Producers Guild of India, said: “The decision of Tamil Nadu government to impose LBET to GST on cinema tickets is a highly retrograde step and the Producers Guild of India urges the Tamil Nadu government to withdraw this regressive tax at the earliest in the larger interests of all sectors of the Indian film industry.”
The Guild members in a recent meeting had expressed concern that if the LBET is not withdrawn, “it will lead to a significantly huge burden on the pockets of the local audience in the state who would have to shell out in excess of 50 per cent tax on cinema tickets”.