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MK Stalin says Tamil Nadu film industry affected by GST, demands roll back of local body tax in TN Assembly

DMK leader MK Stalin on Thursday said that Tamil film industry has been suffering due to the implementation of Goods and Service Tax (GST) and the additional 30 percent local body tax levied on Kollywood, ANI reported. Speaking in the Tamil Nadu Assembly, Stalin demanded a roll back of the local body tax as "it is like a double tax for the film industry".

To lodge their protest against “double taxation” imposed by the state government, theatre owners across Tamil Nadu have been on indefinite strike since 3 July.


Firstpost report noted that the additional tax burden will have an effect on the price of the movie tickets. While a Rs 100 ticket will attract 18 percent GST, tickets of over Rs 100 will attract a GST rate of  upto 28 percent, in addition to the 30 percent local tax. The report added that movie ticket rates across Tamil Nadu had not risen in the last 10 years since there is a cap on the rates. A 2016 high court order had asked the state government to increase ticket prices, but it was not implemented. The film industry had asked the state government to officially fix the ticket rates and scrap the 30 percent local body tax. However, the Tamil Nadu Film Chamber of Commerce had made it clear that theatres in Tamil Nadu were not against GST, but the additional taxes.

On Wednesday, Actor Rajinikanth had said that the Tamil Nadu government's decision to levy 30 percent entertainment tax over and above the Goods and Services Tax (GST) rate of 28 percent will affect the livelihood of lakhs of people associated with the Tamil film industry.

Updated Date: Jul 06, 2017 13:37 PM

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