Cinemas to reopen on Friday

Govt. agrees to film bodies’ demands including waiver of entertainment tax

The government had earlier this month allowed the cinema halls to reopen with 50% capacity from January 5.

The cinemas in the State will reopen on Friday after a gap of nine months, with the State government accepting some of the major demands raised by film bodies. On Friday, Tamil film Master starring Vijay will be released across several centres. The Malayalam films will be released from January 21, with Vellam starring Jayasurya. Around 12 Malayalam films are set for release in the coming weeks.

In a major relief to cinema theatre owners, the government decided to waive entertainment tax and reduce the fixed charges on electricity during the COVID-19 outbreak period, when the theatres had remained closed. The decision was taken following a meeting between Chief Minister Pinarayi Vijayan and the representatives of various film bodies.

The government had in 2019 issued an order allowing civic bodies to collect entertainment tax of up to 8.5% on the sale of cinema tickets, to make up for the revenue losses after the implementation of the Goods and Services Tax. However, the the Film Exhibitors’ United Organisation of Kerala and the Kerala Film Chamber of Commerce had maintained that this amounted to double taxation, as they are already paying the GST on tickets.

Electricity charges

Now, the government has heeded the exhibitors, who were ravaged by loss of revenue after the pandemic outbreak. The government has also decided to reduce the fixed charges on electricity by 50%. The exhibitors can repay the remaining amount in instalments. The property tax which should have been paid to the local body before March 31, 2020, can be paid as monthly instalments. The State government cannot decide on professional tax. The period of various licences for the cinemas from the local body, electrical inspectorate, films division, Health Department and fire force has been extended to March 31.

The decisions of the government were lauded by most actors, including Mohanlal and Mammootty, on social media.

Earlier in the day, Mr. Vijayan held talks with the representatives of the Kerala Film Chamber of Commerce, Film Exhibitors United Organisation of Kerala (FEUOK), Kerala Film Producers’ Association, and Distributors’ Association.

The State government had earlier this month allowed the theatres to reopen with 50% capacity from January 5, but the theatre owners refused to reopen until their demands were met.