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Theatre strike called off: Tamil Nadu government reduces entertainment tax from 10 to eight per cent

Representational image. In this file photo: A movie screen at Luxe cinemas, Chennai.

The standoff between film producers and Tamil Nadu government over the imposition of additional entertainment has come to a conclusion.

According to media reports, the theatre strike has been called off after the government agreed to reduce the Local Body Entertainment Tax (LBET) from 10 to eight per cent on Friday.

Entertainment Tax for non-Tamil films is still 20 per cent.

Jus In: 8% ET.. Revised tkt rates for all types of theaters.. #Mersal will release for #Diwail : #Vishal announces after Govt meeting.. pic.twitter.com/4308IRDhev

— Ramesh Bala (@rameshlaus) 13 October 2017

As per the new rule, 8% of ET will be added to the base price.. It’s not inclusive as it was assumed earlier..

— Ramesh Bala (@rameshlaus) 13 October 2017

New Tkt

Multiplex : Rs. 150 + 28% GST – 42+ 8% ET – 12 = Rs. 204

Non-Plex AC : 100 + 28 + 8 = Rs. 136

Non-AC : 80 + 14.40 + 6.40 = 100.80

— Ramesh Bala (@rameshlaus) 13 October 2017

A notification issued by the Greater Chennai Corp (GCC) had levied a LBET of 20 percent on non-Tamil films and 10 percent on Tamil films with effect from September 27 in addition to the 28 per cent GST on cinema tickets.

The Tamil Film Producers Council, Nadigar Sangam and Theatre Owners Association in Tamil Nadu met government officials to remove the entertainment tax levied by local bodies in addition to the Goods and Services Tax. According to a Behindwoods report, actor Vishal and Tamil Producers Council President and other industry members met Chief Minister Edappadi Palaniswamy to discuss the issue on 10th October Tuesday. 

Around 11 movies were held up due to the strike.

Earlier ‘Solo’, Bejoy Nambiar’s Tamil- Malayalam bilingual starring Dulquer Salmaan was released on 5th October but was pulled off from the theatres the next day when the strike was called.

Saif Ali Khan’s “Chef”, “Blade Runner 2049” and Tamil film “Vizhithiru” were also scheduled to hit the screens on Friday.

Also waiting to release is big-budget Vijay-starrer ‘Mersal’ which is slated for an October 18th release.

Source: The New Indian Express