Theatres in Tamil Nadu closed

Kangana Ranaut in a Swachh Bharat

Kangana Ranaut in a Swachh Bharat

Commercial Taxes Department, Additional Chief Secretary, C Chandramouli said due to the implementation of GST the States' revenue was expected to increase rather than decrease.

Theatre owners say that the new municipal tax will further burden their revenue that will be strained following the implementation of GST or Goods and Services tax from Saturday.

1100 Theatres To Remain Closed From Monday In Tamil Nadu

The GST Council has fixed the tax rate for movie tickets under two categories - 28 percent for tickets costing over Rs 100 and 18 percent for tickets priced below Rs 100.

'If entertainment tax is added to GST, we will be forced to pay 53 per cent of the ticket rate as tax to the government. Tamil Nadu Theatre Owners and Distributors Association president Abirami Ramanathan who announced the cancellation of movie screenings said, "The final price will be around the existing '120".

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Over 800 theatres in Tamil Nadu will shut down from Monday.

However, this move has thrown the film industry into a quandary, with producers and directors pointing out that they will face heavy losses because of the strike.

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The Goods and Services Tax (GST) will result in a drop in the prices of commodities while boosting manufacturing, State Finance Minister D. Jayakumar said on Friday.Speaking to mediapersons at the Chennai airport before leaving for New Delhi to take part in the GST rollout event, he said, "There is absolutely no need to be afraid. We request the state government to sort out the confusion immediately,". "It won't be feasible for us as it will affect the livelihood of over 10 lakh families associated with the industry", he said. This is inclusive of the entertainment tax levied by the state or the local body and it varies from 20%-30% based on the location.

Post GST, the State government's planned to collect municipal taxes separately from cinema halls.

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