Producers not to release films, theatres to be shut against new tax

The Tamil film industry, which is reeling under the 28% GST on movies, is on a protest mode, claiming that an additional 10% entertainment tax levied by the state government would be an additional burden.

The Tamil Film Producers Council has decided not to release new Tamil movies from Friday in protest against the levy of 10 per cent local body tax.

While many theatre owners have decided to go on strike. Already, multiplexes in Chennai are shut.

Noting that film producers were facing difficulties after the implementation of the Goods and Services Tax from July 1, the council in a statement said the announcement of levying an additional 10 per cent local body tax has come as a ‘shock’ to the industry. There’s been a 28 per cent GST on films.

“The council has already expressed its stand on the issue during various meetings with government officials,” it said.

The producers’ council has said the government’s decision will only add to the problems of the filmmakers.

“Tamil film producers have already been affected heavily by problems such as piracy and GST, so the decision to levy LBET has been an additional shock to us,” the council said.