The Karnataka government's decision to fix the upper limit of cinema tickets at Rs 200 has been slammed by theatre owners who want the decision to be reversed at the earliest.
In a statement, the Multiplex Association of India (MAI) said the decision was "retrograde, irrational, unfair, against the interests of film industry and the people of Karnataka, and also potentially unconstitutional."
The MAI claims to represent 18 regional and national multiplex chains covering about 500 multiplexes with more than 1800 screens.
Deepak Asher, President of the MAI said that the move is a dampener in a state that is perceived as "investor-friendly".
The Rs 200 limit on cinema ticket prices does not apply to "Gold Class" screens and "Gold Class" seats in the multiplexes.
Ticket prices for Kannada films have been fixed at Rs 203, with Rs 3 service tax and zero entertainment tax. For non-Kannada films, the maximum ticket price is Rs 264, including taxes.
Claiming that the limit on cinema ticket prices puts multiplexes at a disadvantage to entertainment on television channels and other platforms, the MAI said the decision is "patently unfair, and goes against the principles of equality enshrined in the Constitution of India," besides questioning the basis for regulating prices of discretionary spending.
The Association said that the two chains — PVR and Inox Leisure — are already operating at "5 percent net profit margin", the limit on ticket prices will bleed them, resulting in losses.
For "Gold Class" screen option at PVR Forum, Bengaluru, the ticket prices for today's (Thursday) 10 pm show start at Rs 840 (Platinum).
PVR shares were trading 0.70 percent lower at Rs 1,546 apiece and Inox Leisure was down 1.96 percent to Rs 285 at around 2.30 pm on the BSE on Thursday. The BSE Sensex was up 251 points at 30,146.
