Centre should reconsider taxes on Kollywood industry: CPI (M)

After Tamil Nadu theatre owners and distributors demanded for a low taxation, the Communist Party of India (Marxist) on Thursday said the Goods and Service Tax (GST) has gone against the interest of the poor and middle-class people, and urged the Centre to reconsider the on the taxes imposed post the GST implementation.

Speaking to ANI, CPI (M) leader, G. Ramakrishnan said, "In Tamil Nadu, almost all the industries, be it mineral water, crackers and goods produced by the small and medium enterprises they are on strike now. After Prime Minister Narendra Modi declared that this GST is in favour of the people, but it seems that it has gone against the interest of the poor and middle class."

"So, Marxist Communist Party is urging the government to reconsider the taxes which are already imposed under the GST Council by reducing the taxes and meet the demands raised by a section of the industries," he added.

Yesterday, Tamil Nadu Theatre Owners and Distributors Association president Abhirami Ramanathan said that this double taxation was making things hard for the film industry.

"When PM Modi stated that it's one nation one tax we were happy. But local body tax has hit us severely. We have to pay 60 percent tax. How will production happen? We are unable to survive," he said, on the third day of the theatre owners' indefinite strike.

Adding, "We presented our demand before the Chief Minister and other ministers. They have considered all our requests. We are expecting a good decision by evening. We demand to roll back of local body tax and increase in ticket price. We, as the industry, are speaking in one voice."

For the unversed, over and above the recently hiked Goods and Service Tax (GST), the Tamil Nadu government has imposed a 30 percent local body tax on the Kollywood industry, which means, a Rs 100 ticket will have 18 percent GST; and for tickets above Rs 100, the GST will go up to 28 percent, plus 30 percent of local taxes.

As a result, nearly 1060 theatres across Tamil Nadu have shut down from July 3, to protest against the 'double taxation' imposed by the state government.

Expressing his concern over the same, Thalaiva Rajinikanth requested the state government to consider the plea to abolish local body tax. (ANI)