Kerala State Government to remove the local tax for cinema tickets

In a supportive move for the Malaylam film industry, the state government of Kerala has announced that the local entertainment tax for cinema tickets will be done away once the 28% GST comes into place. The announcement was made by Finance minister T.M. Thomas Isaac who also added that the local bodies would be directed not to collect entertainment tax on cinema tickets and their loss in that score would be compensated by the government. This decision has come as a boon to the overall apprehension that the newly announced GST would increase the ticket cost and eventually affect the turnout at theatre halls. 

It is to be noted here that the GST council is yet to announce a final tax rate for cinemas and this will happen on June 11, 2017. If the final rate still stays at the already announced 28%, then the local entertainment tax would be removed. Speaking on this whole issue, president of the Kerala Film Producers Association, G. Suresh Kumar was quoted as saying,

"The decision has come as a great relief to the industry that is reeling under a crisis. The industry is looking forward to the GST Council settling for a tax rate that would be affordable to all."