Row over entertainment tax ends

Tamil movies at 8%, other languages at 20%; mixed reaction on parking charges et al
Representational image. In this file photo: A movie screen at Luxe cinemas, Chennai.
Representational image. In this file photo: A movie screen at Luxe cinemas, Chennai.

CHENNAI: The row over entertainment tax by local bodies ended on Friday with the State agreeing to reduce the tax from 10 per cent to eight per cent. Also, the government has streamlined the ticket rates amidst complaints that in many theatres, viewers are fleeced whenever films by big actors are screened.
After discussions with Chief Minister Edappadi Palaniswami at the Secretariat, office-bearers of cinema theatres association and film producers council promised that the public need to pay only the revised ticket rates and not a single paisa more. Now, TN theatres have the flexibility to apply for reduced rates for different movies, but in order to avail this, they have to hand the updated form ‘C’ to the government.

When asked about the new ticket pricing rules, Abirami Ramanathan, president of TN Multiplex

Association, said, “I don’t understand why there is so much hue and cry on a mere 10 per cent tax. It effectively only amounts to 10 to 20 rupees per ticket. Why can’t there be a reduction in the salaries that the heroes draw?” About the recommendations put forth by TFPC, he says, “How can I pay for the infrastructure if online booking charges are removed? We need to handle site traffic and I have recently invested some `14 lakh. I have to pay the operator and also pay maintenance charges. How will I cover all these costs?”

He is also unhappy about the parking charges getting abolished. “How can an action randomly be taken when the government is still working on the order from the courts regarding regulation of parking charges?”

When asked about alternatives to theatres like direct-to-home, he says, “Such platforms already exist. But it will take an entire lifetime for the filmmaker to earn the numbers that a theatrical run would fetch.”

Rakesh, owner of Vetri Theatres, paints a contrasting picture. “I’m glad that after years of struggle, the base fare has been increased. We thank the government. We have requested to revise the proposed pricing system after six months. There are talks on further reducing the LBET to 5 per cent.” One of the recommendations made by TFPC was to allow patrons to carry water bottles inside.

To this, Rakesh says, “There is a reason why we don’t allow water bottles. What if a member of the audience carries in alcohol? We do allow children and pregnant woman to carry water bottles. Plus, we provide free RO-purified drinking water.” When asked about the complaint about the cost of food in theatres, he says, “We provide cold coffee at `60. Show me one cafe which will do the same.”

Ruban, who owns GK cinemas, is unhappy with some recommendations. He says, “We allow water bottles now. A lot of theatres provide free water.” He feels chaos will ensue if parking charges are removed. “Who will pay for the rent and extra tax for the land where cars and scooters are parked? These recommendations are just their perspective. If enacted, they should be applied uniformly, inclusive of airports.” Ruban says they are planning to conduct talks with the TFPC on October 14 to discuss these issues. “We haven’t received the official order yet,” he adds.

Actor Vishal, President of TFPC, says, “We presented our side of arguments, along with a set of suggestions.” The tax on non-Tamil movies is still set at 20 per cent, that rate is also under consideration, he said.

On other recommendations, he adds, “The request that packaged items should be sold at MRP, and the recommendation that theatres must take their stand against overpricing tickets, have been received well. I’m happy that this is happening at the time of a festival release. We all know that this is one of the times when people are fleeced.”

Talking about the role of the audience, he says, “The public has the right to question when they see the law not being followed. We also encourage the public to report such issues to the local authorities and government officials.”

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