The Tamil Nadu government's announcement to levy the 30 percent of entertainment tax over the newly implemented GST rate of 28 percent, such kind of announcement of government has standstill the Tamil Nadu Film Chamber of Commerce to shut down the theatres. After four days of the strike, the chamber and the government reached an amicable solution and the strike was called off, amidst speculations that the relief was temporary. On Monday, the Chennai Corporation announced that an additional Local Body Entertainment Tax (BET) of 10 percent will be charged for the Goods and Services Tax, leaving the industry shocked.
Moreover, the Multiplexes Association of India (MAI) directed multiplexes such as PVR and INOX here to shut shop against double taxation. “All multiplexes operating in Chennai have announced that they are going on strike starting today,” read a statement from the Multiplex Association of India (MAI). The statement added that the double taxation defeats the purpose of the GST model and went against the principle of ‘One Nation. One Tax’. MAI President Deepak Asher requested the Tamil Nadu Chief Minister and Great Chennai Corporation (GCC) Commissioner to consider their request to withdraw the BET levied on the film exhibition industry in Chennai immediately. Not only this but The Tamil Nadu Film Producers Council has also said that there will be no new Tamil films will release Friday onwards as the government’s decision to levy an additional tax on already imposed GST will cripple the industry.
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