400 MP theatres shut to protest entertainment tax

Last Updated: Mon, Oct 22, 2018 15:22 hrs
GST Has Cut Effective Tax Rate Across Sectors, Except Electricity

400 threatres have downed shutters protesting a levy of entertainment tax imposed by local bodies in the state.

Even as the state gears into election mode on November, movie-lovers are deprived of new releases as theatres have been down for at least a fortnight now. The protests reportedly began on October 5.

Theatre owners allege that GST of 28% is levied on film tickets, but then urban local bodies too have imposed additional entertainment tax that has impacted their revenues.

The owners claim that local bodies have slapped additional taxes in the range of 5-15%, thereby defeating the purpose of "One nation, one tax".

Jitendra Jain, ex-president of Film Federation of India was reportedly quoted as saying in a PTI story that "The slogan of 'one nation, one tax' which was made when GST was imposed has been proved wrong due to this double taxation."

The impact is likely to affect workers too as there is a risk of losing employment of several owing to the strike.

Industry sources claim that paying additional entertainment tax would encourage other states to impose such taxes. The state government in a report said that after the election code of conduct commenced, it was difficult to arrive at a solution to the theatre owners woes.