When the cinema strike comes to an end, it is not just the movie buffs who will be heaving a sigh of relief.
The city Corporation, which has been seeing a drastic fall in its entertainment tax revenues this past month, would also have something to cheer.
Compared to the preceding months, the entertainment tax collection had fallen by around 35 per cent in December, when new releases where held up due to the standoff between the exhibitors’ federation and the producers.
According to the records at the non-tax revenue wing of the Corporation, October witnessed an entertainment tax revenue collection of ₹1.1 crore. In November, the collection was ₹97.21 lakh. However, by December, this had fallen to ₹65.61 lakh. For each ticket sold, the entertainment tax component comes to 25 per cent of its value, which accrues to the local body.
“Yes, the entertainment tax revenues have taken a hit. The numbers include collections not just from theatres, but from other events held in the city too. Theatre revenues form the major part of it. Since the strike came during the vacation season, during which the footfall increases drastically, the losses are considerable. Now, we can only hope that all the new releases will make up for a part of the losses,” says a revenue wing official.
For the civic body, which has already been reeling under the after-effects of demonetisation, the strike in the Malayalam film industry also came as an unexpected jolt. The month of December witnessed a total fall in revenues of up to 50 per cent.
Even before the crisis, there have been complaints of under-reporting of revenues by theatre owners.
By presenting lower number of tickets than that were actually sold in the collection reports, the theatres could save on the entertainment tax that they have to pay the city Corporation. Ticketing machines in all theatres has been mooted as a solution to this problem.
The Corporation is in the coming months expecting more revenue from this head, as a few more multiplexes are set to open soon in the city.
