Tamil Nadu theatres call off strike over 30% Local Body Tax

Chennai, Jul 6: Bringing good news for cinema goers in Tamil Nadu, theatres owners and distributors have called off strike.

The move comes after the state government said they will form the committee to decide on municipal tax.

The theatre owners and distributors in Tamil Nadu were demanding withdrawal of 30 per cent local body tax on movie tickets.

About 1100 theatres were shut in the state since Monday.

"We are withdrawing our strike. From tomorrow theaters will be open," Abhirami Ramanathan, Tamil Nadu Theatre Owners and Distributors Association.

The news comes has brought cheers for everyone as new films are traditionally released on Friday, considered auspicious in the film fraternity.

Film producer Venkat Shuba said, "They have agreed to look into our demands. We have withdrawn the strike. Around five movies released last Friday are still waiting for an opening. We will continue with those movies. We will not take new releases this Friday".

He said the ticket prices for now will not have the extra 30 percent after GST. The committee will comprise members from the film industry and state government.

The relief came after a lot of pressure from the film industry and Opposition.

The issue was raked up in the Assembly today by DMK working president M K Stalin. He said, "Top stars like Kamal and Rajini have spoken about it. Film industry is not happy about the 30 per cent municipal tax. I urge the state government to exempt the local tax for the ticket prices. They already have a tax of between 18 per cent to 28 per cent. Kerala and West Bengal have waived off the tax. Hence I request the Tamil Nadu government to waive off the municipal tax."

Replying to him, Tamil Nadu Municipal Administration Minister S P Velumani said, "We are holding talks with the film industry. Soon there will be a solution. But the local body tax is not a dual tax".

The superstar had requested the state government to waive off the tax keeping in mind the livelihoods of many in the industry. Kamal Haasan replied to Rajinikanth saying, "The film industry has estimated a loss of Rs 40 crores in the four days at the rate of Rs 4 crore which was incurred per day. The loss is for producer, distributors, theatre owners and canteen owners".