Tamil Nadu government allows ticket price hike of 25%: What does it mean?

With a ceiling of Rs 120, ticket prices have been the centre of a long debate in Tamil Nadu. Amid an ongoing strike against Local Body Entertainment Taxes, the government has agreed to a 25% hike in the base fares. What does this mean to the common movie-goer?

By: Express Web Desk | Chennai | Updated: October 7, 2017 5:01 pm
Tickets fares to be hiked by 25% in Tamil Nadu.

In an end to a prolonged debate, the Tamil Nadu government has finally given in to the demand of theater owners and distributors by allowing a hike of 25% on the upper limit of base ticket fares. In a statement released by the government, it has also stated the various rates to be followed from October 9. 2017. This means that the base price of movie tickets in Chennai will be Rs 120 for non air conditioned theaters and Rs 150 for air conditioned theaters. The minimum price has been increased from Rs 5, Rs 7 to Rs 10 and from Rs 10 to Rs 15. However, it is unclear whether the recently levied Local Body Entertainment Tax is inclusive in the new determined prices, which leaves us with the following scenarios.

For multiplex theatres which earlier had a base rate of Rs 120:

1- If base price is inclusive of LBET, then the ticket price would be Rs 150 + 28% GST
2- If the base price isn’t inclusive of LBET, the ticket prices would Rs 150 + 28% GST + 10% LBET (in case of Tamil movie) or 20% LBET (non-tamil movies)

Similarly, for theaters which had a maximum price of Rs.95 can now charge Rs 118.80 and theaters with base price Rs 85 can now price their tickets at Rs 106.30. Tax additions will be added to these prices as applicable. For tickets booked online, additional net charges will also be levied. The statement also said that cinema associations had asked for maximum base of Rs 160 for air-conditioned theaters and Rs 120 for non-airconditioned screens in Greater Chennai.

The latest decision had added to chaos in the Tamil film industry which is already in turmoil due to the ongoing film producer strike against LBET. For the uninitiated, the Tamil Film Producers’ Council had decided to not release any new films from October 6.

The rates of admission at other places are as below:

Municipal corporations: 

AC theater: Rs 62.50 (max) Rs 15 (min)
Non AC theater: Rs 37.50 (max) Rs 10 (min)

Municipalities:

AC theater: Rs 50 (max) Rs 10 (min)
Non Ac theater: Rs 37.50 (max) Rs. 10 (min)

For long, Chennai has been a haven for cinephiles due to the price ceiling on tickets at Rs 120. With LBET, the increased base prices and GST, looks like watching movies won’t be city’s most enjoyed hobby anymore.