Following the Tamil Nadu government’s order to levy 20 per cent local body tax on non Tamil films and 10 per cent on Tamil films from this week, the Multiplex Association of India has announced a strike to protest the double taxation. In a press release, the MAI called the move “grossly punitive” and “unfair” and declared that all multiplexes operating within the jurisdiction of the Chennai Corporation shall go on strike with effect from today. While PVR and INOX are said to be complying with the strike, operators like Sathyam and Jazz Cinemas are said to be not taking part. A customer-care executive at Jazz Cinemas confirmed to Silverscreen that the multiplex is working today.
National multiplexes in TN – @_PVRCinemas & @INOXMovies will b on strike from Oct 3.Local players like @SPIcinemas not to take part 1/2
— Sreedhar Pillai (@sri50) October 2, 2017
Meanwhile, other theatre owners and distributors in Chennai aren’t happy with the additional tax, either. Speaking to The Hindu, Udeep B, Managing Director of Mayajaal, said: “Double taxation is not good for any industry. The additional levy of tax in addition to GST will be very hard on the Tamil film industry which is already reeling under a 10-year-old ticket cap issue.”
Abirami Ramanathan, President, Tamil Nadu Cinema Theatres Association told the newspaper that the stakeholders in Chennai would meet today and put out a joint reaction.
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The Hindi film industry too, plans to appeal to the TN government to review its decision. Speaking to DNA, producer Ramesh Taurani has termed it “unfair” and that they will be making a representation to the TN government, soon. “Today, TN has levied this tax and if we don’t object, other states like Rajasthan, Bengal and Andhra Pradesh will do the same. We don’t need to look at the value but as a principle, we cannot allow this to happen to us,” distributor Ramesh Sippy told the newspaper.
It is to be noted that the Hindi film industry is already paying an entertainment tax of 48 per cent and a GST of 28 per cent.
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