Even after representation from theater owners, distributors and producers, The Tamil Nadu State Government has not relented in its stand of levying 30% tax apart from the GST on movie tickets across the state. Hence the theater owners are going ahead with the indefinite strike call from today and over 1000 movie halls across the state have been shut down.

The GST rate for regional film sis 28% for tickets above Rs.100 and 18% for tickets up to Rs.100. Now the State Government's decision to retain the 30% entertainment tax through local bodies has come as a big shock for the industry. This would mean that at least 58% of a movie ticket will have to paid as tax.

The film industry is already reeling under so many problems affecting small producers and the prominent among them is piracy and dwindling crowd in theaters. Now this tax would lead to hike in ticket price and eventually the other two problems will only increase.

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