Ticket counter at Satyam Cinemas | Satyam Cinemas
CHENNAI: Hours before GST rollout, the tax regime’s effect is beginning to reflect on the Kollywood entertainment sector.
The Tamil Nadu government has always put a cap on movie ticket prices. But with the implementation of GST, the four Southern states will no longer be able to enjoy tax exemption for their own language movies.
The Centre has put the cinema under ‘sin industry’ and imposed 28 per cent tax on movie tickets. The tickets costing Rs 100 and below will be under the 18% slab, while those costing higher than 100 will fall in the 28% slab.
In 2006, the Tamil Nadu government allowed a tax exemption on movies with Tamil titles. The Kollywood industry would have to bid goodbye to this privilege as the GST is round the corner, and the states are expected to levy an additional tax of 30%.
The confusion arises as the state government is yet to make this decision of adding the state tax to movie tickets.
On ticket booking portals such as Bookmyshow, bookings have been opened only for today, and the ticket sales for July 1st onwards are kept on hold. Kollywood fans and Theatre owners wait on this nail-biter moment. What will it be – an entertainment tax of 28% or 58%?
Source: The New Indian Express