Union Finance Minister Arun Jaitley's official announcement over the implications of GST and his statement on Sunday has saddened filmmakers and movie buffs across India.
Ever since Arun Jaitley announced GST, people across the country were confused over the implications of the revised tax rates, especially prices of movie tickets. Arun Jaitley held the GST Council meeting on Sunday, and later in the afternoon, addressed the media.
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The Union Finance Minister said there would be two taxation slabs for movie tickets. Those priced under Rs 100 will come under the slab of 18 percent, while the base price of tickets over Rs 100 will fall under the 28 percent slab. Avid film goers took to Twitter to share their views on Arun Jaitley's announcement.
Addressing media after the 16th meeting of the GST Council, June 11, 2017 https://t.co/ulSwrYXSpg
— Arun Jaitley (@arunjaitley) June 11, 2017
Sreedhar Pillai felt that GST on movie tickets would affect business for the Tamil film industry. The trade analyst tweeted, "Breaking -At #GST council meet today, @arunjaitley says entertainment tax will be now in 2 categories- For tickets less than Rs 100- 18%. #GST council meet confirms tax on tickets more than RS 100 will b 28%, no change! So no real win. Now will have 2 wait TN govt g.o 4 clarity."
The film critic added: "In Chennai if TN govt waives current 30% tax and says RS 120 will be the new Net + GST 28%, then a Sathyam can charge Rs 153.60. #GST Big + for theatres selling ticket below RS 100. An #AVMRajeshwari paying 30% tax on their highest Rs 50 ticket, now will cost RS 64. Now the ball is clearly in the court of TN govt. The #EPS Sarkar as per their track record will follow the rules set by Central govt."
Film-goers noted that there are hardly a few theatres which charge less than Rs 100 for a ticket, while no multiplex will charge less than Rs 100. Some felt that the government decision would give rise to torrent sites and piracy, which would cause losses to the already struggling Indian film industry. Here are some Twitter comments:
Moviebuff @moviebuffmaster
#GST on movie tickets
Just Watch My Review @Justwatchreview
Looks #GST will going increase more piracy in the cinema.. Difficult to save Tamil cinema...
S ANIL PRASAD GUPTHA @SANILPRASADGUP1
sir..plz remove tax on rice and reduce movie tax on tickets below 200..if not reduce tax on movie tkts..indirectly encourage piracy.
Sree @sreeramshenoy
How to encourage torrents?!! Where the hell do you get movie tickets for less than INR100?
Maayya Vallai @hp31579
100% Rit sir .This will effect only The Family audience. Already theaters becoming marriage Halls etc worst Time for Cinema industry #GST
