On Monday at the Kerala Assembly, Finance Minister TM Thomas Isaac stated that the state government was planning to re-introduce the entertainment tax, but only on non-Malayalam films. Last year, the government removed entertainment tax on films in view of fears of double taxation once GST was introduced.
The minister reportedly said that there was gross tax evasion in the industry, and added, “The reintroduction of entertainment tax on other language films released in the state is a suggestion that can be considered seriously.”
He was responding to a calling attention motion by actor-turned-politician MLA KB Ganesh. Ganesh said that there was a the lack of regulations to monitor ticket sales. He also pointed out that some theaters were charging exorbitant rates for tickets and for parking charges as well, and that Malayalam movies were suffering because new non-Malayalam films were being screened in theaters across the state.
"Kerala should follow the examples of Tamil Nadu and Karnataka in imposing entertainment tax on other language films. We should impose at least 15 per cent tax on such films screening in our state to improve the tax revenue," Ganesh said.
In response, the Finance Minister said that the state will consider the same.
Thomas Isaac further announced that the government is planning to introduce a centralised e-ticketing system which would help curb tax evasion by theater owners.
State Minister for Cultural Affairs and Cinema, A K Balan, stated that Kerala State Film Development Corporation (KSFDC) had already implemented an e-ticketing system in some theaters and is working to expand the same.