Tamil Nadu Government reduces entertainment tax for Cinemas to 8%

Tamil Nadu Government reduces entertainment tax for Cinemas to 8%

The Tamil Nadu government has made a decision to reduce the entertainment tax from 10 percent to 8 percent, Tamil Nadu Film Producers Council (TFPC) president Vishal announced after his meeting with government officials over the issue of double taxation and ticket price hike.

Following this move, salaries for state government employees and government teachers in Tamil Nadu will reportedly increase by 20 per cent. On October 7, the producers' council imposed an embargo on new Tamil film releases protesting the government decision to levy 1 percent tax on Kollywood films, in addition to 28 percent GST.

The standoff between film producers and Tamil Nadu government over the imposition of additional entertainment has come to a conclusion.

Also waiting to release is big-budget Vijay-starrer "Mersal" which is slated for an October 18th release.

Local Administration Minister S P Velumani, Information and Public Relations Minister Kadmbur Raju took part in the high level meeting at the Secretariat which was chaired by K Palaniswami. The ticket prices in airconditioned cinema halls throughout Tamil Nadu, other than multiplexes, will be a minimum of Rs 40 and maximum Rs 100. In multiplex theatres, a minimum of Rs 50 and a maximum of Rs 150 can be charged.

The filmmakers demanded the local body tax be completely abolished. The audience should henceforth have to shell out about Rs 206 to watch a Tamil film at multiplexes, while the ticket prices may be more than Rs 220 for other languages.