On Thursday, theater owners in Tamil Nadu called off their four day long strike after the State Government gave in to their demand to roll back the additional municipal tax of 30%.
The theaters in the State were shut over the decision made by the Government to impose a 30% local body entertainment tax in addition to the 28% GST.
“We have withdrawn the strike and all the theaters will be open from tomorrow morning. The Tamil Nadu government has removed the 28% corporation tax for the time being,” the President of the Tamil Nadu Film Chamber of Commerce, Abirami Ramanathan said.
From Friday, all the theaters across the State will start functioning while some theaters opened on Thursday evening itself.
The State Government assured the committee will listen to the demands of the theater owners.
“Some of the theaters will be open today evening and rest of them will be open by tomorrow morning. For now, no corporation tax. The government has promised to form a committee and look into the demands of the theater associations,” Nikilesh Surya, Executive Director, Rohini Silver Screens said.
The Tamil Nadu Film Chamber of Commerce claimed the strikes resulted in more than Rs. 20 crore loss by Wednesday.
The proposed tax structure would have made it difficult for theaters to make a profit with taxes going up to as high as 60% including the municipal tax.
On Thursday, the Indian Politician, M.K. Stalin said, “After GST and entertainment tax, the film industry is suffering. They are in shock, theaters on strike for last four days.”
