The Tamil Nadu Theatre Owners and Distributors Association on Thursday called off its strike against the 30% municipal tax imposed on movie tickets and said that theaters will be open from Friday, ANI reported. A report by NDTV, however, said that screenings would resume on Thursday evening.
Association President Ramanathan said the strike was called off after the state government agreed to set up a committee to consider their demands. “A committee including representatives from the government and our association has been formed to sort out the matter of tax,” Ramanathan added.
More than 1,000 theaters have been shut since July 3 to protest against the local tax that was imposed in addition to the Union government’s Goods and Services Tax of 28%. According to the new tax regime, Goods and Service Tax of 18% will be imposed on film tickets priced below Rs 100 while a 28% tax will be applicable on tickets priced at Rs 100 and above.
On Wednesday, actor Rajinikanth had urged the Tamil Nadu government to reconsider its decision to levy the entertainment tax “Keeping in mind the livelihood of lakhs of people in the Tamil film industry, I sincerely request the Tamil Nadu government to seriously consider our plea,” he had tweeted. Actor Kamal Haasan had issued a statement in which he cited the example of states like Kerala and Karnataka that have not levied any additional tax over and above GST.
The Tamil Nadu Theatre Owners and Distributors Association had called for the shutdown because of a lack of clarity on ticket prices after the Goods and Services Tax was launched on June 30 midnight. Market experts had pegged the loss to the film industry because of the ongoing strike at Rs 4 crore per day.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!