Movie ticket gets costlier in Tamil Nadu: Is it a relief for Kollywood?

The Tamil Nadu government has given nod to the long-pending demand of exhibitors and producers on the increase in the movie ticket price. Early reports say that the base price of the admission rates have been raised by Rs 25.

The maximum price for the movie tickets are now capped at Rs 150 for multiplexes and the minimum at Rs 15. However, there is no clarity on whether it includes all the taxes or not.

Assuming that the tax is not part of the price, movie goers will now have to shell out the below rates to watch Tamil movies in an AC multiplex in the state. 

Rs 150 (base rate) + 42 (28 % GST) + Rs 15 (10%entertainment Tax) = Rs 207

If booked online, additional Rs 30 will have to be borne by the user that takes the total to Rs 237

For a non-Tamil movie
Rs 150 (base rate) + 42 (28 % GST) + Rs 30 (20% entertainment Tax) = Rs 222

If booked online: additional Rs 30 have to be borne by the user that takes the total to Rs 252

According to trade tracker Sreedhar Pillai, the latest development will not be a boon if 10 percent entertainment tax levied by the state government is included in the base rate.

He posted, "Ticket Update- As per sources Rs 150 nett mentioned will absorb 10% local body taxes 4 Tamil/ 20% other language films + 28% GST= Rs 192. [sic]"

He added, "Ticket Update - If trade absorbs local body taxes, nett shared by trade 4 Tamil will be Rs 135, for other language Rs 120. Not a good deal!"

However, the theatre owners and the producers are yet to give a reaction over the issue.