Tamil Nadu theatres bandh ends; movie shows to resume from Friday

The indefinite bandh called by the Tamil Nadu exhibitors over dual taxation has reportedly come to an end on Thursday, 6 July. The state government and the film industry have sorted out the issues and theatres will re-open from Friday, 7 July.

The Tamil Nadu government has reportedly directed the theatres to call off the strike and resume screening of movies from Friday. Both the parties have agreed after it was decided that the film industry will not be burdened by additional tax and the entertainment tax would be replaced by GST (Goods and Service Tax). 

A committee will be formed to look into the local tax issue and other issues raised by the exhibitors, who demanded the state government to increase the price on movie tickets. Currently, there is a cap of Rs 120 on film tickets in the state. 

The theatres in Tamil Nadu began an indefinite strike from Monday, 3 July, demanding the state government not to burden them with dual taxation. The exhibitors started facing the heat after the GST was rolled out even as the state government failed to abolish the local taxes.

The theatre owners called for the bandh after the state government failed to scrap 30 percent entertainment tax following the implementation of GST from July 1. The dual taxation with a cap on movie tickets meant 48-58 percent of a film's revenue will be collected as taxes leaving peanuts for the distributors and exhibitors.

With the GST implementation, the movie tickets lesser than Rs 100 have come under 18 percent slab and above Rs 100 would be levied 28 percent tax. Above it, the Tamil Nadu government had 30 percent entertainment tax.