As a form of protest against the Goods and Services Tax (GST), approximately 1,000 theatres across in Tamil Nadu have gone on an indefinite strike called by theatre owners. The strike has been called in effect owing to the state's imposition of 30% entertainment tax in addition to the 28% GST on film trade.
Tamil Nadu is the only state in the country that has announced a separate tax in addition to GST. While there were last-minute talks on Sunday by producers to resolve the impasse and persuade the theatre owners to not go ahead with the strike, the talks seem to have fallen through.
Tamil Nadu Cinema Theatre Owners Federation president Abirami Ramanathan on Sunday announced that cinema hall owners would proceed with the strike - to the agony of the producers of recently-released films.
Not only the Tamil Nadu Cinema Theatre Owners Federation, the producers' council has also opposed the tax. The livelihoods of more than 10 lakh people depend on the state's film trade. This indefinite strike could have an impact on R Madhavan's 'Vikram Vedha', one of the big releases scheduled for a release this week in the state.