GST effect: The agitation over high tax rates for Tamil films is a sign of things to come

Cinema is sacrosanct in South India, and film ticket prices are even higher. This is why Tamil Nadu is in a strange dilemma and observed a temporary ban on new versions until the problems created by the imposition of the tax on goods and services are eliminated.

The maintenance of a price of the entrances in the roof is a pan-south phenomenon of India and has been historically a politically sensible subject. However, the film industry in the South had begun to discuss the increase in prices of regional film tickets to coincide with the new slabs imposed by the GST from 1 July.

The new tax places 18-28% of the ticket prices in the country. Tamil Nadu is about to have an additional tax due to its state government. Contrary to the rule “One nation, one tax,” the government of Edappadi Palaniswamy imposed an additional local tax of 30% on the theaters.

Between GST and local tax levels in Tamil Nadu rose 5%, the highest in any state in the country. The question is whether ticket prices in a state known for their protectionist policies would seriously have a choice but to be lifted.

“Maybe they will, maybe they will not,” said Abirami Ramanathan, Chairman of the Chamber of Commerce’s film in Tamil Nadu. The room I hope the state government will eliminate the local tax. At least 1 060 screens in Tamil Nadu were closed after the Tamil Nadu Film Chamber has asked to stop on July 3.

“We welcome a common tax for the country, what we are against is the local body tax by 30%,” said Hindu Archana Kalpathi, CEO of AGS Cinemas. “Considering that we have a cap on ticket prices, we can not pass on taxes to the public. If theaters must pay movie entrance taxes, which greatly reduces the share of producers and Such a tax is a blow. ”

In a statement, actor and producer Kamal Haasan criticized the government of Tamil Nadu, accusing him of what is impossible cinema. “Neighboring states like Kerala have completely given up taking over state tax on film beyond the GST,” Haasan said.

“The film industry has asked Mr. CM Kerala Pinarayi Vijayan and he, through his Finance Minister, has quickly announced that Kerala has more taxes on trade and movie buffs. Karnataka was in addition to facilitating the well-being of the film industry. cinema.

Telangana and Andhra also do the best for their film industries. Only Tamil Nadu Government. This led to 30%. “Haasan is partly simply by observing other southern states do not foresee an additional tax. However, each of them addresses the impact of the GST on regional cinema.

No one wants the highest ticket rates, especially in Tamil Nadu, Karnataka and Telangana, which have historically benefited from the lowest prices through their respective governments. GST, tax exemption granted animation for movie theaters were canceled local in the south.

This means that the filmmakers have to pay more than any before watching movies in Karnataka’s movie theaters, for example. The same situation prevails in Tamil Nadu and Telangana. Even before the additional tax, the maximum price of tickets that was already discussed in Tamil Nadu.

Producers and exhibitors had already started discussing the increase in ticket prices since 1 July. Before GST, ticket prices were limited at Rs 50 for individual screens and Rs 120 for multiplex with three or more screens.

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