Chennai: More than 1,100 cinema theatres across Tamil Nadu remained closed on Tuesday for the second consecutive day protesting “double taxation” by the state government after GST came into force.
Industry sources said the strike would continue even on Wednesday, incurring a loss of Rs 50 crore per day. Tamil Nadu Film Chamber of Commerce president Abirami Ramanathan, who is leading the protest against the government, said on Tuesday that the government was yet to get back to them on their demands.
“We met government representatives yesterday and they said they would get back to us today (Tuesday). But we have not heard anything from the government,” Mr Ramanathan said.
The theatre owners are protesting against levy of 30 per cent municipal tax along with 18 per cent GST for tickets below Rs 100 and 28 per cent GST for tickets above Rs 100.
They want the “double taxation” to end since paying tax to both the government and the municipal body would not be possible due to higher rates of tax. While a ticket of Rs 100 would cost Rs 118 in Kerala, Karnataka, Andhra Pradesh and Telangana, the same would be Rs 148 in Tamil Nadu.
Mr Ramanathan reiterated that the industry was not opposed to GST but levy of corporation/municipal (entertainment) tax which is 30 per cent.
