The regional film industry feels the Entertainment Tax rate at the highest bracket of 28 per cent under GST could kill the industry.
In some States like Karnataka and Tamil Nadu, the tax rate would shoot up to 28 per cent from zero per cent.
“You can’t have the same tax rate for the national film industry and the regional industry. You must have two slab rates. It will be detrimental to fix the local language film at that rate, at least in the home State. This could lead to closure of several theatres and would hit the industry revenues severely,” D Suresh Babu, Managing Director of Suresh Productions, told BusinessLine.
The GST Council has put films in the same category as gambling that attracts the highest rate of 28 per cent. Suresh Babu said the regional film industry representatives have submitted memorandum to Finance Minister Arun Jaitley and Chief Ministers of various States seeking reduction in tax rate.
