KOCHI: The Kerala Film Chamber of Commerce (KFCC) on Friday urged the state government to withdraw its decision to allow local bodies to collect 10% entertainment tax on movie tickets. According to the office-bearers of KFCC, the move would see the price of a movie ticket go up by a minimum of `15, which will be a burden on moviegoers.
Briefing the media here, KFCC president Vijayakumar said nearly 80% of theatres in the state are already in financial crisis. “The decision to allow local bodies to collect 10% entertainment tax on tickets will further add to the financial crunch of theatre owners as the audience will keep away from move halls if ticket rates are high,” he said.
The government had earlier scrapped the entertainment tax collected by local bodies on tickets after the introduction of GST. In December 2018, the tax rate for movie tickets above `100 across the country was brought down to 18% and later to 12% from the 28% fixed by the GST Council in 2017.
“The hike in the ticket price will affect a large number of audience and the dip in collection will have a negative impact on the industry,” said B Unnikrishnan, FEFKA general secretary. In single-screen theatres, the ticket price is likely to increase up to `125 from the existing `110, when the entertainment tax is imposed. In multiplexes, where the average rate is between `150 and `250, ticket prices will be between `165 and `275.
In April, the film industry bodies had approached the High Court against the government decision based on which the court granted a stay on collecting tax which will come to an end on July 3. “We hope the court will extend the stay. However, if the government goes ahead with the decision, we will be left with no option but to launch strong protests, ” said MC Bobby, executive committee member.