Cinemas shut across TN over local body tax

Film goers in Tamil Nadu were deprived of their entertainment as over 1,000 cinema halls across the state commenced an indefinite strike today seeking withdrawal of 30 per cent local body tax being levied in addition to GST.
Going ahead with their strike announced on Friday, the exhibitors knocked at the doors of Chief Minister K Palaniswami seeking a review of a 30 per cent Entertainment tax, charged by the city corporation, citing their 'inability' to pay both taxes.
The state government, on its part, assured to look into the issue even as it said the matter had to be decided at a policy level.

Representatives of Tamil Nadu Theatre Owners and Distributors Association (TNTODA), South Indian Film Chamber of Commerce, South Indian Artistes' Association (SIAA), Tamil Film Producers Council and Film Employees Federation of South India (FEFSI) met Palaniswami to discuss the matter.
Earlier, TNTODA President Abhirami Ramanathan made it clear that they were against the local body levy.
"We are against the Corporation (entertainment) Tax which is 30 per cent. This is in addition to the GST rates (of upto 28 per cent). We are not against the GST. We welcome it," he said.

The association earlier in the day met Finance Minister D Jayakumar, before calling on Palaniswami.

Jayakumar said he has assured the representatives that the government was with them.
"They sought withdrawal (of local body tax). This matter has to be decided at a policy level and I told them the Amma (Jayalalithaa) government is with them," he said.
The Minister said he had assured them the matter will be discussed with the Chief Minister and "a good solution will be found out."
Theatres were shut "due to our inability to pay taxes," Ramanathan said in reference to the 30 per cent tax.
Besides the local tax, a GST of 18 per cent has been fixed for tickets priced below Rs 100 and 28 per cent for those above Rs 100.

Meanwhile, the Tamil Nadu Film Producers' Council has requested theatre owners to reconsider their decision to close down the cinemas considering the welfare of film producers.
Council President and actor Vishal Krishna expressed inability to support the theatre owners on this matter, saying adequate time has to be given to the state government to look into the demand.
"Film industry needs to speak in one voice. Our film associations will discuss with the state government soon," Kamal Haasan said when asked about theatre strike in the state. He was inaugurating Lissy Lakshmi's dubbing studio.