30% entertainment tax affects Kollywood

The state Government passed a bill on Sept. 14 according to which the Entertainment Tax has been hiked by 100%. This rule also included the DTH suppliers to pay 30% tax. As a new initiative the Indian Premier League matches too have been bitten by the tax bug.

According to this bill theatre owners in the state will end up paying exactly double of the tax of what was being paid already. While theatres coming under the municipalities and the corporations were paying 15% tax so far, hence forth they will pay 30%. As far as the panchayats are considered they will hence forth be paying 20% while earlier it was only 10%.

The real brunt of this hike will be suffered by people who do small-budget films. But this tax hike will not affect the ticket rates so public are safe, but it will affect the profit percentage received by the theatre owners and producers so far. It has also been clearly mentioned by the government that the tickets rates will not be increased.

This news has come as a blow to the producers as well as exhibitors at a time when there is a lot of chaos at the TFPC already. Some of the producers and exhibitors are planning to meet the CM and request her to reconsider her decision regarding the ET (Entertainment Tax).

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