Kumari Palany & Co

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Steep rise in cinema ticket price

Posted on: 07/Oct/2017 5:24:38 PM
The state government of Tamil Nadu has approved to increase the price of cinema tickets. Subsequently, there has been a very steep rise in the cinema ticket prices.

The system, GST (Goods and Services Tax), streamlining a uniform tax structure throughout the country, was implemented from 1st July. There were different GST slabs allotted for different items and services the cinema tickets came under the GST slab 18% and 28%. In addition, the Tamil Nadu state governments additional entertainment tax of 30% was imposed. The film industry, including theatre owners, protested strongly against this and went on strike. The strike was withdrawn later.

The state government appointed a committee to review the proposed additional entertainment tax. As per the recommendations of the committee, the additional entertainment tax imposed was reduced from 30% to 10%. However, the theatre owners still protested this additional entertainment tax of 10%.

They explained they cannot afford to pay the GST slab 28% and the additional entertainment tax of 10% for a total 38% tax. They stopped the release of new films. They also warned that they might close the theatres. They also demanded that the ticket rates must be increased. In this situation, the state government has approved the increase in ticket rates.

For the multiplex theatres in Chennai, ticket rate is fixed at minimum Rs. 50 and a maximum Rs. 160. Earlier, it was Rs. 10 and Rs. 120 respectively. The maximum has been fixed at Rs. 140 in other cities.

This ticket fare mentioned above does not include taxes. If 28% GST and 10% entertainment tax is included, the maximum price in multiplex theatres will be Rs. 220 and the maximum fare in the non-multiplex theatre will be Rs. 193.

Currently, when online booking is done, a charge ranging from Rs. 15 to Rs. 30. If this is also included, the maximum price of a movie ticket in multiplex theatres will be Rs. 250 and in non-multiplex theatre, the maximum ticket price will be Rs. 223.

If the expenses normally incurred in the theatres for snacks are included, this would work out to be Rs. 300 per person in the multiplex theatre. If a family of 5 visits, it will be a total expense of Rs. 1500. This increase would vary in village areas, large city administration, city administration, and the town Panchayat.

Already there is a heavily recorded complaint that the public does not come to the theatres in view of the huge expenses for the ticket and the snack items. With the developments explained above about the additional taxes, the public has been reeling under this shock.