Effects of GST shows in Tamil Nadu where the 1000 cinema houses have canceled screenings.
The reason behind the cancellation of screenings is that there is imposed 30 percent local body tax apart from additional tariffs under the new GST plan. According to official information cancellation of screenings will be from 3rd July 2017 but many of cinema houses had closed on 1st July also. So it was the big impact of GST.
1,000 Cinema Halls Cancel Screenings In Tamil Nadu
As according to the president of the Tamil Nadu Film Exhibitors Association’s Abirami Ramanathan The association had decided on Friday to cancel shows from 3rd July, many cinemas shut down yesterday itself. Almost 1000 cinema halls statewide are shut now.
Responding to a question asked by a reporter Ramanathan said an additional levy of about eight percent under GST over 30 percent local body tax had pushed the total taxes to over 60 percent. He urged the government to immediately scrap the local body tax of 30 percent, saying such a move automatically take away the additional levy of eight percent under GST.
Ms. Ramanathan said theaters were shut due to “our inability to pay taxes and our move is not against the government”. Ms. Ramanathan is also chief of the Tamil Film Chamber of Commerce.
As according to Ramanathan “The local body tax of 30 percent is in addition to the GST tax rate of 28 percent (for tickets over Rs. 100) and 18 percent (for tickets priced less than Rs. 100)”.
Ms. Ramanathan Said “If we screen movies, we have to pay local body taxes immediately as it came into force from yesterday. We are closing since there is no other way out”
As according to Ramanathan only in India do cinema theaters have no right to fix ticket prices. We cannot increase prices for big ticket movies. We have requested the government to fix a threshold within which we should be allowed to either increase or cut down ticket prices as per the need.