A 25% hike in movie ticket rates by the Tamil Nadu State Government will come into effect starting October 9. As per the new rules, the Greater Chennai multiplexes can charge a base price of Rs. 150 for a single movie ticket. By bringing into the mix the 28% GST (Rs. 42), online booking charges (Rs. 30) and 10% entertainment tax (Rs. 15), the final ticket price that a moviegoer will have to shell out would be around Rs. 237.
The TN government issued an official statement in the form of a press release. It is as follows:
“The Government have formed a High Level Committee with the Additional Chief Secretaries/Principal Secretaries/ Secretaries of the Departments concerned and the representatives from the Tamil Film Chamber of Commerce and the Tamil Film Producers Council to examine various issues relating to Cinema Industry including request of Cinema Associations for revision of the rates of the Cinema Tickets.
During the High-Level Committee meeting, the representatives from various Associations from the Cinema Industry have represented that the film industry is facing lots of difficulties due to Video-Piracy, increase in the expenses in running the theatres and film-making and enhancement of Entertainment Tax from 20% to 30%. The Associations have further stated that in the view of introduction and enforcement of Goods and Services Tax, they will not be in a position to make films and to operate the cinema theatres at the existing rates of admission and many theatres are being closed.
In view of the increase in the expenditure and incurring losses. A lot of Cinema Associations have therefore requested the Government revise the rates of admission to the Cinema Theatres.”
The government has fixed the slab price of Rs. 150/ticket after theatre owners had asserted for a 160 rupee base price in Greater Chennai multiplexes.
It now needs to be seen when the Tamil film fraternity will withdraw their strike after the revision of movie ticket rates by the state government.
