Tamil Nadu Film Chamber to Take Call on Strike After Confusion Over GST

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Tamil Nadu Film Association members have decided to go on an indefinite strike from July 3 owing to the lack of clarity on the new tax structure after the launch of the Goods and Services Tax.

Bengaluru: Tamil Nadu Film Association members have decided to go on an indefinite strike from July 3 owing to the lack of clarity on the new tax structure after the launch of the Goods and Services Tax. Theatre owners are a confused lot. While some theatres charged Rs 120 for a ticket, others charged Rs 143.

Tamil Nadu theatre owners are still not sure about the tax to be charged on tickets, particularly because of 30% local tax to be imposed on the films without a Tamil title.

Owing to the continued uncertainty over the matter, members of the Tamil Nadu Film Chamber met Tamil Nadu Chief Minister Edapadi Palaniswami, State Finance Minister, and a few others to discuss the complexities in the tax structure and its impact on the industry.

Abirami Ramanathan, President, Tamil film chamber of commerce, said: "Tamil Nadu Govt is imposing a local body tax of 30% and we demand relief. We met the Chief Minister who said the government will hold a meeting and take a call on their plea. We will wait till until tomorrow afternoon for their response and take a final decision." On Friday, they announced that they will go on an indefinite strike from Monday, but that is now on hold and the decision on this will be taken only when the State Government responds.

D. Jayakumar, Finance Minister, Tamil Nadu said that the government has read the memorandum submitted by the Theatre Association. "Film industry has given a memorandum. Tamil Nadu Government can take a decision on entertainment tax. They have asked us to remove the entertainment tax. We will talk to Chief Minister and take a final call."

However, theatre owners hope the State Government does not impose the local tax on cinema tickets. S. Thanu, a famous producer, said: "Every Minister we met understood our difficulties and we hope for a positive response. We will wait for their decision."

The 30% levy is on tickets for movies which do not have a Tamil title, and it’s now upon the state government to take a call on whether or not it be brought down. So far, the government has not reverted to the theatre owners.