October 4, 2017
The Tamil Nadu Film Producers Council on Wednesday said no
new Tamil films will release on Friday onwards until the state government
removes the additional 10 per cent tax over and above the GST.
In a
statement, President of the Producers Council Vishal said: "We will have a
meeting today (Wednesday) to discuss the next course of action.
"No new
Tamil films will release this week as we feel the additional 10 per cent Local
Body Entertainment Tax (LBET) above the Goods and Services Tax will disable the
industry."
On Tuesday, the Multiplexes Association of India (MAI)
directed multiplexes such as PVR and INOX here to shut shop against double
taxation.
"All multiplexes operating in Chennai have announced that they
are going on strike starting today (Wednesday)," read a statement from MAI.
According to the statement, the double taxation defeats the purpose of the
GST model and goes against the principle of One Nation One Tax.
MAI
President Deepak Asher appealed to the Tamil Nadu Chief Minister K. Palaniswani
and Great Chennai Corporation (GCC) Commissioner to consider their request to
withdraw the LBET levied on the film exhibition industry in Chennai immediately.
Vishal said they were ready to go on indefinite strike if the government did
not consider their request.
"Various stakeholders have already explained
their situation to the government. Unfortunately, 10 per cent tax has been
levied without regulating the ticket prices.
"This will only increase
the losses for the producers and pave way to more confusion," Vishal added.