Over 450 cinemas in MP go on strike over local body taxes
More than 450 movie theatre operators in Madhya Pradesh — multiplexes as well as single screens — have gone on an indefinite strike starting Friday against the double taxation on cinema tickets. Initially called by the Multiplex Association of India (MAI), the strike has been joined by Central Cine Circuit Association as well as the Producers Guild 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.
While Madhya Pradesh accounts for about 4% of total box-office revenues of the country, this strike will have a severe impact on new films like ‘Andhadhun’, ‘Loveratri’ and ‘Venom’ (dubbed) that released on Friday, as well as films like ‘Stree’ and ‘Manmarziyaan’, which were still running in the state.
As state government entertainment taxes are subsumed in GST, Madhya Pradesh has empowered local bodies to start levying entertainment tax in addition to the GST just as Rajasthan and Gujarat governments had done.
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.
While Madhya Pradesh accounts for about 4% of total box-office revenues of the country, this strike will have a severe impact on new films like ‘Andhadhun’, ‘Loveratri’ and ‘Venom’ (dubbed) that released on Friday, as well as films like ‘Stree’ and ‘Manmarziyaan’, which were still running in the state.
As state government entertainment taxes are subsumed in GST, Madhya Pradesh has empowered local bodies to start levying entertainment tax in addition to the GST just as Rajasthan and Gujarat governments had done.