Can’t pay 30% local tax over GST! Tamil Nadu cinemas close doors in protest

Around 1,000 cinema houses in the state of Tamil Nadu have started to cancel screenings in protest against the imposition of 30% local body tax that they are asked to pay over and above the prescribed goods and services tax (GST).

"Though the Tamil Nadu Film Exhibitors Association had decided on Friday to cancel shows from July 3, many theatres shut down yesterday itself," said Abirami Ramanathan, president of the association. He added that the decision has been taken by around 1,000 cinema halls.

Ramanathan, who also heads the Tamil Film Chamber of Commerce, said that the reason behind this decision it the inability to pay taxes, adding that they are not against the government.

The theatres have been asked to pay a local body tax of 30% in addition to the GST tax rate of 28% and 18%, depending on the price of the tickets.

This, along with an additional levy of about 8% under GST makes the total taxes to go beyond 60%.

The theatre owners have demanded the removal of the local body tax, which would automatically fix the additional levy, stressing that the livelihood of about 10 lakh people depends on the film industry.

(Image source ArtBeat)