Movie Tickets to be Expensive in Kerala from Today as Govt allows Local Bodies to collect Entertainment Tax

Tax Movie Tickets

The price for movie tickets in the Kerala State to become expensive from today as the Government allowed the local bodies to collect entertainment tax on the same in addition to GST. Though a government order in this regard was issued a few days ago, the local bodies were not able to impose the same till June 16, as a High Court stay was in force.

With the implementation of GST in 2017, local bodies had stopped collecting entertainment tax.
Later, the state government decided that local bodies can continue to collect the same as it’s a major source of revenue for them.

A government order with immediate effect was issued on 10th June. However, the same could not implemented due to the existing High Court order that had stayed local self-government bodies from collecting the tax on top of GST.

The decision to impose 10 pc tax was made after the GST on film tickets was reduced to 18 per cent from 28 per cent.

Under the old tax regime, the entertainment tax had been collected by the local bodies. Post GST rollout, the same continued to be levied as per the provisions of Section 3 of the Kerala Local Authorities Entertainment Tax Act.

Now the act has been amended to fix the entertainment tax at 10 per cent. A notification has been sent to all panchayat, municipality and corporation secretaries and theatre owners about the same. This is aimed at reducing the income loss faced by local self-government bodies.

“We had stopped entertainment tax collection after the implementation of GST. However, Tamil Nadu had been collecting the tax even after GST implementation. The entertainment tax will be a boost to local bodies. We are deducting the same percentage which was deducted as GST, except that the share will now go to local self-government bodies,” said BS Thirumeni, Panchayat Director. Now, Kerala is following TN in charging both GST and entertainment tax.

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