The theatres strike in Tamil Nadu entered its third day, with no breakthrough in talks between theatre owners and state government. The crux of the issue is that Tamil Nadu Film Exhibitors Association wants the state government to scrap the additional 30 % local body tax imposed by them over and above GST.
The government is in no mood to relent, as seen by the failure to come to an understanding. The government viewpoint is that the 30 % additional tax is a major source of revenue for the local bodies. The theatres believe that state government is dragging its feet over the matter as they want to control and extract their pound of flesh from the industry.
The real fear of Kollywood is that corruption would comeback in a big way if the state government imposes local bodies taxes and later exempt movies which grease their palms. As S.Sasikanth of Y’Not Studios producers of Vikram Vedha said: “The real fear is that this 30 % tax would be used to extract money from producers for tax exemption. We want this systematic plunder to stop.”
Meanwhile the industry representatives will be meeting state government ministers and officials once again today afternoon. They want the government to scrap the local body taxes and also want a rationalizing of ticket prices which were issued 10 years back.