Local Body Entertainment tax leads INOX and PVR to shutdown
Earlier today, national multiplexes like Inox and PVR Cinemas were found to be shut at Chennai, with online and other means of bookings disabled. The theatres were closed in protest against the local body tax imposed by the Greater Chennai Corporation’s Revenue Department on Tamil and other regional films. Apparently an order was issued on September 30, 2017 levying a local body entertainment tax on Tamil movies at 10% for new films and 7% for old ones. They have also imposed a tax on new films in other languages at 20% while old ones' tax rate is at 14%.
Chennai is a very important revenue- generating market for the Tamil Film Industry. Even a shut-down for a day can incur heavy losses. But if the local tax is made permanent, then it will take away the theatre business' margin from film tickets. A meeting is expected to be held with all stakeholders in a day or two. Whether these theatres will remain shut till then is the big question here. It is also worth mentioning here that the local multiplexes like SPI cinemas and others remained open and they will take a call on the strike, post the meeting with all stakeholders.