Effects of GST shows in Tamil Nadu where the 1000 cinema houses have canceled screenings. After a meeting with finance minister D.Jayakumar, Abirami Ramanathan, president of Tamil Nadu Theatre Owners and Distributors Association said the minister has assured to solve the issue after holding discussion with chief minister Edappadi K Palaniswamy. After the GST which was passed on the midnight of June 30, the Cinema hall owners have to tax of almost 58%. This will mean curtains in cinema halls are shut down for at least for 10 Tamil films that released in the past two weeks in Tamil Nadu. The Tamil Nadu government's last minute order converting the Entertainment Tax into local body tax has raised many questions.
"We expect Govt of TN to remove the local tax and address the concerns of the theatre owners so that the film continues", two-time National award-winning writer and film producer, Dhananjayan Govind, said. "My film has just entered second week of successful run and when things finally started to look good, this announcement took everybody by surprise", Vijay said. It may be recalled that versatile actor Kamal Haasan had earlier expressed his displeasure in unequivocal terms against the GST rates fixed for the Tamil film industry. "We hope and pray the TN government gives us the lifeline we so badly need". "We welcome it", Tamil Nadu Theatre Owners and Distributors Association president Abhirami Ramanathan said.
The indefinite theatre shutdown has proved to be dismal for the films that released this Friday, while casting a shadow over the success of upcoming releases.
"It's simple, we are only the collecting point, the money only goes further into the industry which at this rate of taxation, will collapse", Ramanathan said. They (both AIADMK and DMK) have been using the Entertainment Tax as a method to control the film industry. The theatre owners asserted that they are unable to cope with the huge tax burden. "You can not bring a Monoculture into a country like India", Kamal Haasan said.