NewKerala.com

Key Points

Tamil Nadu Chief Minister M K Stalin has reduced the Local Body Entertainment Tax on films from 8% to 4%, responding to appeals from the Tamil film industry. This move is seen as providing significant relief to producers, particularly those of small and medium-budget films. While the industry expressed widespread gratitude, theatre owners, such as Tirupur Subramaniam, remain cautious, indicating no immediate ticket price cuts. Overall, this decision is expected to strengthen the Tamil cinema sector, heralding growth and stability.

Key Points: Tamil Nadu CM M K Stalin Reduces Entertainment Tax for Films

  • M K Stalin cuts entertainment tax from 8% to 4%
  • Tamil Nadu film industry hails decision as a boost
  • Long-standing industry appeal for tax reduction met by TN government
  • Theatre owners express concern over ticket pricing impact
3 min read

South Indian Film Chamber of Commerce thanks TN CM for reducing Local Body Entertainment Tax

M K Stalin slashes Tamil Nadu entertainment tax to 4% in a boost for cinema.

South Indian Film Chamber of Commerce thanks TN CM for reducing Local Body Entertainment Tax
"This decision is a great boon to the Tamil film industry. - SIFCC"

Chennai, June 3

The South Indian Film Chamber of Commerce on Tuesday expressed its heartfelt gratitude to Tamil Nadu Chief Minister M K Stalin for accepting its request to reduce the Local Body Entertainment Tax on films from eight per cent to four per cent.

In a statement that it issued on Tuesday, the South Indian Film Chamber of Commerce said that reduction of the Local Body Entertainment Tax had long been a consistent plea from the Tamil film industry and that it took the initiative to bring this matter to the attention of the Tamil Nadu government.

Pointing out that Chief Minister had now reduced the tax from 8 per cent to four per cent, the SIFCC said that it sincerely thanked Chief Minister M K Stalin, Deputy Chief Minister Udhayanidhi Stalin, and Minister for Information and Publicity M.P. Saminathan.

"This decision by the Tamil Nadu Government stands as a great boon to the Tamil film industry. There is no doubt that this move will further the growth and strengthen the position of Tamil cinema. Therefore, once again, on behalf of the entire Tamil film industry, we extend our sincere thanks to the Hon’ble Chief Minister of Tamil Nadu," it said.

The decision to slash the Local Body Entertainment Tax, which comes in response to long-standing appeals from the film fraternity, has been widely welcomed by producers, distributors, and industry bodies. Each year, more than 1,000 films are released across Tamil Nadu, and the eight per cent entertainment tax - added on top of the GST- was often cited as a burden, especially for small and medium-budget films.

Members of the industry have repeatedly pointed out that the high tax structure was adversely affecting their ability to recover production and distribution costs, particularly in the case of low-budget ventures. Now, the state government's move to halve the tax is being hailed as a timely relief.

The Film Employees Federation of South India (FEFSI) expressed its heartfelt gratitude to Chief Minister M.K. Stalin for heeding the industry's plea.

In a statement, FEFSI said that the reduction would help revive the struggling sector and provide much-needed encouragement to smaller filmmakers.

However, theatre owners have expressed a more measured response.

Tirupur Subramaniam, a leading distributor, theatre owner, and former president of the Tamil Nadu Theatre Owners and Exhibitors' Association, welcomed the government’s intent but clarified that the reduction in entertainment tax would not lead to any cut in ticket price.

- IANS

Share this article:

Reader Comments

K
Karthik R.
This is a great move by TN govt! Our film industry was struggling after pandemic and high taxes made things worse. Now small filmmakers can breathe easier. Hope other southern states follow suit 🤞
P
Priya S.
Good decision but disappointed that ticket prices won't reduce. Theatre owners always find ways to keep profits high while common moviegoers bear the cost. Government should monitor this properly.
R
Rajesh K.
As someone from film distribution business, this is a huge relief! The 8% tax + GST was killing small regional films. Now more content-driven movies can be made without worrying about recovery. Kudos to CM Stalin for understanding our problems.
M
Meena V.
Happy for film industry but what about other entertainment sectors? Drama troupes, cultural programs also pay same high taxes. Government should think about entire entertainment ecosystem, not just cinema.
S
Suresh G.
Tamil cinema is our pride! This tax cut will help compete better with other language films. Maybe now we'll see more quality content instead of just commercial masala movies. Entha TN cinema ku oru nalla padam! 🎬
A
Ananya P.
While this is positive, I hope the savings are passed to technicians and workers who form backbone of industry. Big stars and producers shouldn't pocket all benefits. FEFSI must ensure fair wages continue.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50