Over 400 theatres shut to protest against MP entertainment tax
Indore, Oct 21 (PTI) Film lovers in Madhya Pradesh
have been deprived of watching new releases since October 5 as
over 400 theatres have downed shutters in protest against
entertainment tax levied by some local bodies in the state.
A theatre owner said that entertainment tax, which had
been levied over and above GST, had created an additional
financial burden on the sector and was also defeating the "one
nation, one tax" that GST promised.
"Goods and Services Tax of 28 per cent is levied on
film tickets. Now urban local bodies, depending on their
categories, have imposed additional entertainment tax ranging
from 5-15 per cent. Screening of new movies have stopped since
October 5 as theatres are shut," said Jitendra Jain,
ex-president of Film Federation of India.
"The slogan of 'one nation, one tax' which was made
when GST was imposed has been proved wrong due to this double
taxation," Jain told PTI.
He said that workers employed at these theatres are in
danger of losing their livelihood due to the strike, and
demanded that the Union government intervene immediately.
Cinema industry sources said that big players in the
sector are unwilling to pay this additional entertainment tax
as it would encourage other states to impose such taxes on
Meanwhile, sources said that the model code of conduct
in place in poll-bound Madhya Pradesh was stopping the state
government from taking a decision on the issue.
MP will go to polls on November 28 and counting of
votes will take place on December 11. PTI HWP ADU