Around 1,100 cinema halls and multiplexes across Tamil Nadu stopped screening films on Monday with distributors and theatre owners going on an indefinite strike against an additional 30% tax over and above the newly implemented GST.
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.
Office bearers of the Tamil Nadu Theatre Owners association, Tamil Film Producers Council and distributors association on Monday met chief minister Edappadi K Palaniswami and various TN ministers for the past few days to discuss this issue.
Earlier, TNTODA President Abhirami Ramanathan made it clear that they were against the local body levy.
“We are against the Corporation (entertainment) Tax which is 30 per cent. This is in addition to the GST rates (of upto 28 per cent). We are not against the GST. We welcome it,” he said.
Actor Vishal said though the State government officials have sought another day to look into the issue the strike would continue on Tuesday as well. The TFPC president said that they would once again meet with relevant officials on Tuesday evening.