Tamil Nadu Govt Slashes Entertainment Tax from 8.6% to 4% on Request of Kamal Hassan
It is anticipated that this policy change will directly benefit moviegoers by reducing ticket costs and increasing the number of people who can attend movies.
Entertainment Tax – Kamal Hassan – taxscan
Entertainment Tax – Kamal Hassan – taxscan
The Tamil Nadu government officially announced a decrease in the Local Bodies Entertainment Tax ( LBET ) for Tamil-language films, reducing it from 8.6% to 4% in the hope to stimulate the Tamil film industry ahead of the release of Mani Ratnam-directed Kamal Hassan’s new movie ‘Thug Life’.
The updated rate will go into effect immediately. Following an intense plea by Kamal Haasan, who stressed the financial strains the film industry was under following the COVID-19 outbreak, the decision was made. Since audience attendance is still recovering and production costs are rising, the sector has been struggling with declining profits, reported Times Now.
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It is anticipated that this policy change will directly benefit moviegoers by reducing ticket costs and increasing the number of people who can attend movies. By increasing profit margins, it also provides a much-needed buffer to industry participants, such as distributors, producers, and theater owners.
Following COVID-19, a lot of people began watching movies via over-the-top (OTT) platforms, which occasionally caused theaters to be empty. On the other hand, it will be packed when a super-star or must-see movie is showing. The cinema federation claims that a huge entertainment tax will make the situation worse. Therefore, the government's decision to cut the tax rate in half is a very admirable gesture.
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Usually many states usually exclude some films with historical importance or that they believe everyone should see in order to support the films. That will only apply to that one film, not the whole thing. But by splitting it in two, the Tamil Nadu government draws attention to this issue.
This decrease in entertainment tax may act as a spur for fresh impetus at the box office as Thug Life prepares for a big theatrical release on June 5, suggesting a possible comeback for Tamil cinema.
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