Mumbai: The Tamil Film Producers Council has opposed the decision of theaters in the state to close new tax rates after the application of the goods and services tax.
“More than 20 producers, whose films have recently been released or awaiting their release, will be seriously affected if there is a closure of the theaters,” TFPC president Vishal said in a statement from The Hindu.
He added: “While we realize that the GST will have a tremendous impact on the industry, we hope the council has been consulted before a decision like this is made. This will be detrimental to producers.”
More than 1,000 theaters have decided to close since Monday to protest the high taxes on movie tickets after the implementation of the GST.
Ticket prices above Rs. 100 will be taxed at 28 percent and those below Rs. 100 would fall below 18 percent of slab after GST. Apart from this, the theaters are also supposed to pay an extra local body tax of 30 percent, bringing the total taxes to more than 60 percent.
Tamil Nadu Finance Minsiter D Jayakumar has held a meeting with the owners of the theaters and said that Prime Minister Edappadi Palaniswamy will soon make a call on whether 30 percent of additional taxes will be discounted or will continue.
