In a letter written to Tamil Nadu Government, Tamil Film Producers Council has threatened to not release any movie from October 6 if 10% Local Body Entertainment Tax (LBET) is not removed.
The LBET imposed by Tamil Nadu Government is in addition to the GST, which is already 28%.
The Guild producer members, in the recently held meeting, decided to discontinue screening their films in all the cinema halls in Greater Chennai to voice their opposition against imposition of LBET by the government.
As per reports, the members expressed their serious concerns that if the LBET levied by the Tamil Nadu Government in Greater Chennai is not withdrawn then it will lead to a significantly huge burden on the pockets of the local audience in the state, who would have to shell out in excess of 50% tax on cinema tickets.
Producers, distributors and cinema owners all across India are clear that they will be unable to conduct their business in any city, district or state where films are subjected to LBET over and above GST, and any such move will only lead to closure of cinemas as has happened in Chennai city.
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