Kollywood observing a shutdown once more, TNFEA planning a protest against LBET: As per the reports it is being considered that Tamil Nadu Film Exhibition Association is planning to go on a strike in March 2020 in the protest of Local Body Entertainment Tax which is being collected by the State Government. Having given the GST of 18 percent if it comes to that 8 percent Local Body Entertainment Tax there would no profit be remained for them. Hence they are denying for bringing forward any movie. If it comes to know that After the Tamil Nadu Producers’ Council, now the exhibitors are prepping up for bringing the entire cinema halls across the state in March 2020 to a standstill.
It is being planned to protest against the Local Body Entertainment Tax (LBET) being collected by the state government. As per the reports, Tirupur Subramaniam who is the president of the Tamil Nadu Film Exhibitors Association has said the theater owners are planning to shut down in March owning to difficulties in running cinema halls. As per as you know they are having to pay 18% GST if it comes to that 8% Local Body Entertainment Tax which is considered that it will not help the business in any way for them.
It has been considered that before the implementation of the GST The state Government imposed a 30% tax on Tollywood movies. but gave tax exemption to the movies which had Tamil names as its title, promoted the local culture and bagged the ‘U’ certificate from the censor board. However, once the GST came to effect, the state government decided to have 10 percent LBET in addition to 28 percent GST on movies.
After much protest, the LBET was reduced to 8 percent, while the GST was the movie tickets priced less than Rs 100 was brought down to 18 percent. If it comes to that it has become almost difficult to operate theater with 18 percent GST and that too with 8 percent Local Body Entertainment Tax in addition to the 70 percent.
Earlier, when we intimated the same to the government, they said a solution would be arrived at in six months’ time, but so far, nothing has happened. An official decision on the shutting down of movie halls will be announced if the meeting between producers, exhibitors, and distributors, scheduled to be held after Pongal, doesn’t yield any result,” The Times of India quotes Tirupur Subramaniam as saying.
If the Taxes are diminished the situation would be handled Because there is no profit is being considered after paying this extensive tax for the movies.