Around 1K theatres in TN shut against 30% local tax

Nearly 1,000 cinema halls across the southern Indian state of Tamil Nadu remained shut on Monday after theatre owners decided to go ahead with the strike against the imposition of 30 per cent local body tax apart from additional tariffs under the new (Goods and Services Tax) GST regime.

"We are against the Corporation Tax (local body tax) which is 30 per cent. This is in addition to the GST rates. We are not against the GST. We welcome it," Tamil Nadu Theatre Owners and Distributors Association, President, Abhirami Ramanathan said.

He had sought the withdrawal of 30 per cent local body tax while pointing out that the Kerala government has withdrawn it.

"The tax of 30 per cent is in addition to the GST Tax rates, theatres are shut due to our inability to pay taxes," he said.

Besides the GST, which came into effect from last Saturday, 18 per cent has been fixed for tickets below Rs 100 and 28 per cent for tickets above Rs 100.

The Association had also called on Chief Minister K Palaniswami on July 1 seeking his intervention on the issue.

Meanwhile, the Tamil Nadu Film Producers' Council has requested the theatre owners to reconsider their decision considering the film producers.

The Council President and actor Vishal Krishna in a statement had expressed inability to support the decision taken by the theatre owners, saying a suitable time be given to the state government to look into the demand raised by the members of the film fraternity.

As the theatres are shut from Monday, film producers took to social networking sites to ask the government to sort out the issue.