‘No double tax on single-screen cinema’

Rujuta Parekh
Saturday, 15 July 2017

“The Centre has taken into cognisance the decision of the Tamil Nadu government to levy state tax on cinema. There will be no double tax incidence under GST. You will get justice. A similar double taxation will not happen here,” he said.

PUNE: In a good news for owners of single-screen theatres in the city, as well as the Pune Exhibitors Association, Union Human Resource Development Minister Prakash Javadekar has assured them that there will be no double taxation on these theatres.

While in the city for an interaction with trade associations on Saturday, members of the Exhibitors Association raised questions about levy of state taxes on single-screen theatres like in Tamil Nadu. “One Nation One Tax is not available to us as state taxes may be levied on us. How is it One Nation One Tax then?” said a member. Another member of the Film Exhibitors Association said such a policy would sound the death knell for Marathi cinema. 

The members raised this question in light of the Tamil Nadu government charging a 30 per cent tax on cinema halls. Due to this additional tax, the tax incurrance on cinema in Tamil Nadu is nearly 60 per cent. Cinema halls across Tamil Nadu had gone on strike following the announcement. 

On similar lines, the Pune Exhibitors Association was also planning a state-wide strike if any local body or state tax was announced in Maharashtra. “During our association meeting, it has been decided that all single-screen theatres in the entire state will remain closed if the government was to announce local tax,” said association President Sadanand Mohol. 

However, Javadekar assured that these theatres would not have to face levying of double tax. “The Centre has taken into cognisance the decision of the Tamil Nadu government to levy state tax on cinema. There will be no double tax incidence under GST. You will get justice. A similar double taxation will not happen here,” he said. 

Reacting to the development, Mohol said it is a very nice decision. 

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