1,100 TN cinemas shut down protesting 30% tax over GST

CHENNAI: 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 GST.

As the goods and services tax (GST) was launched on July 1, the state government slipped in a 30% corporation tax on ticket sales. The tax would cripple the film industry, sources said.

“We are against the corporation tax which is 30%. This is in addition to the GST rates. We are not against the GST. We welcome it,” Tamil Nadu Theatre Owners and Distributors Association president Abhirami Ramanathan said. The GST replaces more than a dozen central and local levies, unifying India into a common market. It subsumed entertainment tax as well, so the Tamil Nadu government rechristened it as corporation tax, asking cinema owners to pay up.

Ramanathan sought its withdrawal, saying the government in neighbouring Kerala had withdrawn it. “The tax of 30% is in addition to the GST rates, theatres are shut due to our inability to pay taxes,” he said.

Actor-filmmaker Kamal Haasan said the industry would speak with “one voice” on the decision. “The entire industry is gathering together and we shall speak as one voice soon.”

Slowly but steadily voices against the decision are getting louder. “If there is an attempt to create a uniform tax regime across the country, why is Tamil Nadu government alone imposing this huge tax, which amounts to double taxation?” a cine producers’ association member said.