After GST came into force nationwide on July 1st, the Tamil Nadu government announced that they would be levying a local body tax of 30 per cent over and above the 28 per cent GST already levied on ticket prices in theatres in the state. Protesting this double taxation, the theatres announced shutdown of services from July 3rd.
"We have been facing close to Rs 20 crore in losses daily because of the closing of over a thousand theatres across the state. The government has listened to us, and have affirmed that they are withdrawing the 30 per cent Local Administrative Tax. Also, there will be a committee that will be constituted with members from both the government and our side, and we are positive that the decision will be in out favour," said Abhirami Ramanathan, president of the Tamil Nadu Cinema Theatre Owners Federation.
On the question of what the new prices of tickets across the state would be, he said," It will be 28 per cent of GST over and above the current ticket prices."
With no theatres opening bookings as of now, there doesn't seem to be any clarity on what the exact prices of the tickets will be.