Thursday, 19 October, 2017

Tamil Nadu Government reduces entertainment tax for Cinemas to 8%

Palaniswami Tamil Nadu Chief minister Edappadi K Palaniswami
Melissa Porter | 13 October, 2017, 22:35

According to media reports, the theatre strike has been called off after the government agreed to reduce the Local Body Entertainment Tax (LBET) from 10 to eight per cent on Friday.

The Tamil Nadu government has chose to reduce the entertainment tax from 10 percent to 8 percent, Tamil Nadu Film Producers Council (TFPC) president Vishal announced after his meeting with government officials over the issue of double taxation and ticket price hike. With this the long pending local body entertainment tax and GST issue has been solved.

The standoff saw several new Tamil flicks being held up as film producers body announced last week that new movies would not be screened in view of the tax.

Producers' body in the state had been protesting against the imposition of the said tax. The ticket prices in airconditioned cinema halls throughout Tamil Nadu, other than multiplexes, will be a minimum of Rs 40 and maximum Rs 100. The total ticket price will be approximately around Rs 230. "Audience don't have to pay more at ticket counters than the rates fixed by the government".

"Mersal and another film will release along with films of other languages on Diwali", Vishal confirmed.

Shares of PVR and Inox Leisure gained 5-7 percent intraday on Friday as investors cheered cut in entertainment tax in Tamil Nadu. The new price slabs will come into effect from Diwali. However, after the protest of Tamil fraternity, the government revised the base price of the ticket for the first time in 10 years.