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Why local body taxes on films are a bad idea

Battle between theatre owners and Tamil Nadu govt over additional taxes could set a bad precedent

Vanita Kohli-Khandekar 

Vanita Kohli-Khandekar On Monday, over a 1,000 cinema screens in Tamil Nadu shut down indefinitely. They are protesting a local body tax of 30 per cent, over and above the goods and services tax (GST), which came into effect on July 1. The GST is 18 per cent for tickets below Rs 100 and 28 per cent for those priced above. What complicates the situation is a price cap on cinema tickets in Tamil Nadu: Rs 50 for single screens and Rs 120 for multiplexes.  “The effective tax will be 52-53 per cent (on a ticket capped at Rs 120) There will be nothing left for guys (theatre owners and production ...

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First Published: Tue, July 04 2017. 22:40 IST
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