Over 400 theatres shut down to protest against entertainment tax in Madhya Pradesh

Bhopal, October 22: Film lovers in Madhya Pradesh have been deprived of watching new releases since October 5 as over 400 theatres have downed shutters in protest against entertainment tax levied by some local bodies in the state.

 

"Goods and Services Tax of 28 per cent is levied on film tickets. Now urban local bodies, depending on their categories, have imposed additional entertainment tax ranging from 5-15 per cent. Screening of new movies have stopped since October 5 as theatres are shut," said Jitendra Jain, ex-president of Film Federation of India.

The strike is in response to a notification issued by the Bhopal and Indore Municipal Corporations, levying Local Body Entertainment Tax on all films, of up to 15% in Bhopal and 5% in Indore. These taxes are in addition to the 28% Goods and Services Tax (GST) on cinema tickets.

Strike of theatre owners during the two most crucial festivals – Dussehra and Diwali, which bring the most profitable season for the film industry – is likely to incur losses worth Rs 40 to 50 crore. The industry in MP has already incurred losses of around Rs 5 crores, according to the Central Circuit Cine Association (CCCA).