INOX and PVR have announced that they are going on strike from today. They protesting against the additional local body entertainment tax levied by by Chennai Corporation in addition to GST. SPI Cinemas will function today and they will make an announcement after consultiong with Tamil Nadu Theater Owners Association.
The local body entertainment tax for a Tamil movie will be 10 % while non Tamil Films will be taxed 20%. This has drawn sharp reactions from Bollywood.
In July, the Tamil NaduTheatre Owners Association went on a week long strike protesting additional 30% Entertainment tax levied by State government on top of GST. They withdrew the strike after the government agreed to form committee and discuss the issues
Currently a GST of 28% is charged on tickets priced above 100Rs. With the local entertainment tax component the ticket prices will be pushed up higher. This is indeed a tough time for the film industry reeling under piracy and high production costs