A temporary truce has been reached between the state government and theatre owners.

Dear Tamil Nadu your theatres are open again strike called off Representational Image
news Cinema Thursday, July 06, 2017 - 17:01
Theatre owners in Tamil Nadu have called off their four-day long strike on Thursday after the state government gave in to their demand to roll back the additional municipal tax of 30%.  
 
"We have withdrawn the strike and all the theatres will be open from tomorrow morning. The Tamil Nadu government has removed the 28% corporation tax for the time being,” President of the Tamil Nadu Film Chamber of Commerce, Abirami Ramanathan told TNM.
 
All theatres across the state will start functioning from Friday, while some will open on Thursday evening itself.
 
The state government has also announced that the committee will listen to the demands made by the theatre owners.
 
"Some of the theatres will be open today evening and rest of them will be open by tomorrow morning. For now, no corporation tax. The government has promised to form a committee and look into the demands of the theatre associations," Nikilesh Surya, Executive Director, Rohini Silver Screens told TNM.
 
Cinemas in the state remained shut over the state government’s decision to impose a 30% local body entertainment tax in addition to the 28% GST.
 
The Tamil Nadu Film Chamber of Commerce had earlier said that the strikes resulted in more than Rs 20 crore in losses by Wednesday.  
 
The proposed tax structure would have made it difficult for theatres to make profits with taxes going up to as high as 60% including the municipal tax.
 
The move had attracted criticism from big names in the Tamil film industry and political leaders.
 
On Thursday,  Leader of Opposition MK Stalin had said, “After GST and entertainment tax, the film industry is suffering. They are in shock, theatres on strike for last four days,” MK Stalin told the state Assembly. 

Show us some love and support our journalism by becoming a TNM Member - Click here.