The Goods and Service Tax (GST), which has come into effect from Saturday, has apparently come as a big blow to the Tamil film industry, which has decided to go on an indefinite strike from Monday, July 3.
With the state government not giving clarity on the implementation of GST, the fear of dual taxation has led Kollywood to go on a strike.
"The state government should clear the confusion (on how much tax amount theatre owners will be charged) over the weekend. From Monday, all shows across theatres in the state will be suspended," Abirami Ramanathan, president of the Tamil Nadu Film Chamber of Commerce, told reporters on Friday.
In Tamil Nadu, there is a cap on movie tickets and the exhibitors cannot charge more than the stipulated amount. At the max, the multiplexes can charge Rs 120.
Now, the tickets costing Rs 100 and below have been brought under the 18 percent slab, while those costing higher than Rs 100 will continue to fall in the 28 percent slab.
"Cinema ticket in TN will cost Net Amount + #GST +Local Taxes (30%). Out of Rs 100 ticket, Rs 58 will go as taxes, Rs 42 distributor & theatre [sic]," critic Sreedhar Pillai explained the scenario on Twitter.
Actor Siddharth slammed the state government over the issue and tweeted, "#TN govt punished Tamil Cinema for years with #Ucertificate and bribes for #TaxFree & Tamil title scams. Now they want 30% + #GST ? #shame [sic]."
The state government has been giving entertainment tax exemption to the movies that meet its criteria and particularly to the film that bag 'U' certificate from the regional censor board. But the process had been marred with lots of controversies as the politics and corruption were involved in it.
