THEATRES OPEN BUT WHAT ABOUT THE TAX STRUCTURE? STATE GOVERNMENT THROWS A NEW GOOGLY

After 4 days of struggle, theatre association finally has come to an agreement with the government and has found out a stopgap solution to reopen the theatres all over Tamil Nadu starting from tomorrow morning (7th July).

The state government has apparently informed the film fraternity that no entertainment tax will be charged on movie tickets for the next 1 month. So only GST charges will be applicable till then.

Why just 1 month? What will happen after that? That is where the government throws a googly. Looks like 30 days is a grace time for the government and the film fraternity to come into terms.

We are told that a 6 member committee will be formed to decide on the entertainment tax structure and other processes like computerized billing for all theatres to make the overall system more systematic.

Out of six members, 3 will be representing the state government; other 3 will be from the fraternity. 1 from Nadigar Sangam, 1 from Producer Council and 1 from Distributors Association. But it is said that the government is reluctant to let go of the state entertainment tax. A minimum of 10% at least will reportedly be charged on movie tickets.

We hope the industry members and the government find an amicable solution to solve the crisis faced by the fraternity.