The Tamil Nadu Distributors Association had called a meeting of its members and has come up with a couple of startling resolutions, including going on an indefinite strike.
Speaking to reporters, filmmaker and actor T Rajendar, president of the Chennai Thiruvallur Kancheepuram Distributors’ Association, said that many distributors had been facing financial issues, and the additional tax would only add to their burden.
“We are expected to pay 10% TDS for turnover, based on the theatrical run of a film, which might not always mean that the film has given us any profit. This is extremely unfair,” TR said.
Protesting against the 10% TDS that is being levied by the central government on distributing films, the association will stop distributing films from March 27. And they have threatened to stick to this decision indefinitely until the government removes this tax.
The association also requested the Tamil Nadu government to repeal the 8% Local Body Entertainment Tax (LBET) that is being levied on top of the 12% GST levied on tickets as it has become a burden for moviegoers, who have, in turn, become picky about visiting theatres.
Stating that distributors are an important bridge between producers and theatre owners, he said that their appeals had to be considered to ensure that the industry functions smoothly.