Theaters in Tamil Nadu will be closed from Monday (July 3) to protest against the 30% Local Tax imposed by TN Government above the GST.
As per the newly implemented GST, theaters which sell tickets above RS 100 should pay 28% tax and theaters which sell tickets below RS 100 should pay 18% tax. But now, with the Local tax, theater owners have to pay 48-58% of their income to State and Central Governments.
Among the four South Indian states, Tamil Nadu is the only place where the Government has imposed additional tax above GST.
"TN theatres have announced indefinite shut down of theatres from Monday as Govt.of TN has not come out with a clear support 2 film industry.We delivered a good film in #IvanThanthiran but sadly Govt.of TN's lack of clarification on both GST&Local Tax is killing our film's success. Lovers of good cinema - Rush & watch #IvanThanthiran in theatres next 2 days as all theatres shall shut down from Monday in TN. Sad state", tweeted Dhananjayan, distributor of Ivan Thanthiran, which has opened with positive reviews on Friday (June 30).