A bill has been passed in the state assembly to ensure local bodies can benefit from the tax collected.

With GST rollout just days away films with Tamil titles to lose concessions
news GST Wednesday, June 28, 2017 - 08:53

With GST subsuming all taxes, the Tamil Nadu government can no longer grant waivers to films with Tamil titles, reports ToI.

The entertainment tax waiver given to films that had Tamil titles always remained a matter of contention. Even the court has reportedly, in the past, questioned if this move enriches Tamil culture. 

According to the report, successive governments have attempted to politicise this particular tax concession. The DMK government exempted films from entertainment tax during its regime but the AIADMK government subsequently scrapped it after assuming office in 2011. A bill to repeal the Tamil Nadu Entertainment Tax act,1939 was introduced last week.

"Tamil Nadu Entertainments Tax Act, 1939 enables the government to levy and collect entertainment tax. Recently the Constitution has been amended (for GST). Due to this the government has decided to repeal the Tamil Nadu Entertainment Tax Act under section 174 of the proposed TNGST Act," local body minister S P Velumani said, while moving the bill in the assembly on June 24, according to ToI.

The move is reportedly aimed at helping local bodies get a share of GST. This has been much talked about and questioned ahead of this decision.

Kollywood has been in turmoil ever since the Goods and Service Tax (GST) was announced by the Central government. The GST will kick in from midnight of June 30.

The positive thing about GST, according to experts, is that the content will not be compromised for tax exemption. “Earlier people used to make films by compromising the content because they wanted ‘U’ certificate. Only U certificate films with Tamil subtitles were given tax exemptions. But now, a creative director can do anything with the content which is a big benefit,” said a trade analyst.

Due to the GST, many of the Tamil movies which have been exempted from taxes are trying to release before July 1, 2017. The Hindu has reported that June will see the release of at least 20 Tamil movies, including some which have been exempted from tax.