Multiplexes in Tamil Nadu go on strike against levy of local body tax

CHENNAI: The movie aficionados in the state of Tamil Nadu are in for a rude shock as all the multiplexes in the state have decided to remain shut in protest of the local body tax.Nadu are in for a rude shock as all the multiplexes in the state have decided to remain shut in protest of the local body tax.

Incidentally, the Greater Chennai Revenue Department has ordered levying of 10 per cent entertainment tax on Tamil films and 20 per cent on Other Language Films (OLF), which is over and above the 28 per cent GST rate.

The members of Multiplex Association of India (MAI), thus decided to go on strike starting October 3.

MAI believes that this levy of local body entertainment tax by Chennai Corporation leads to double taxation, on an industry which is already “reeling under the impact of high tax rates and piracy”, and could well sound the death knell of the film industry.

Deepak Asher, President of the Multiplex Association of India, said, "We most humbly appeal to the Honorable Chief Minister of Tamil Nadu, Edappadi K Palaniswami and the Commissioner of Greater Chennai Corporation D Karthigeyan to kindly consider our request favorably and withdraw the LBET levied on the film exhibition industry in Chennai immediately."

He added that such withdrawal will ensure the survival of the film industry, and will support an environment of "safe, secure and wholesome entertainment option" for the population of Chennai.

"On the other hand, continuance of an LBET, in addition to GST, will render cinema exhibition unviable, and will eventually kill the film industry," Asher added.

By industry estimates, every multiplex property stands to lose around Rs 6 lakh per day for everyday it remains closed.