Cinema hall owners in Tamil Nadu began their indefinite strike on Monday to protest against additional 30 per cent entertainment tax over and above 28 per cent taxes under Goods and Services Tax (GST) by the Centre on film business . Around 1100 cinemas remained closed across the state after producers failed to convince cinema owner bodies to call off the strike.
Under the Goods and Services Tax, film businesses have to pay taxes to the tune of 28 per cent for tickets over Rs 100 and 18 per cent for those priced below Rs 100. Tamil Nadu is the only state in India charging an extra tax in addition to GST.
"The tax of 30 per cent is in addition to the GST Tax rates, theatres are shut due to our inability to pay taxes," a PTI report quoted Abhirami Ramanathan, president of Tamil Nadu Theatre Owners and Distributors Association.
Very sad & in a state of shock. Despite my multiple attempts, theatres in TN going on strike tomorrow. #IvanThanthiran will not be there😥😥😥- Dhananjayan Govind (@Dhananjayang) July 2, 2017
#IvanThanthiran - we can only give a good film. Beyond that what can be done when the whole system is collapsing. Deeply disturbed😥😥😥- Dhananjayan Govind (@Dhananjayang) July 2, 2017