The unprecedented shutdown of cinemas in protest against the 30% local body tax imposed on the film industry by the State government will continue on Wednesday, said industry representatives.
With the strike entering its third day, the estimated loss of shutting down 1,127 screens across Tamil Nadu amounts to ₹10 crore.
The shutdown has already prompted popular film personalities, producers and other stakeholders to speak out against the 30% tax levied by the local bodies. The stakeholders of the industry had detailed discussions with S.P. Velumani, Minister for Municipal Administration, Rural Development and Implementation of Special Programme, and reportedly explained why the State stands to gain more by slashing taxes.
Elaborating on the discussions, Abirami Ramanathan, president, Tamil Nadu Theatres and Distributors Association, said the representatives explained in detail the financial status of the industry.
“We explained that we pay more tax when we start production. The more the number of films, the higher will be the revenue for the State,” said Mr. Ramanathan.
Decline in production
He said they underlined the fact that high taxes would bring down the production of films. “With a 30% entertainment tax, the State government’s revenue will go up only when a film becomes a big hit. The revenue from entertainment tax before GST was only ₹84 crore. We requested them not to kill an industry for ₹84 crore and that they stand to gain much more by allowing it to flourish,” he said.
Producers Kalaipuli. S. Thanu and Gnanavel Raja and filmmaker R. K. Selvamani were also present at the discussion.
