Kollywood is heading towards taxing phase
Posted on: 19/Apr/2017 4:28:19 PM
All the Tamil movies released for the Tamil New Year had just got an average box office opening. This is due to the competition created among them. In spite of the U certification and tax-free state, there is a minor difference for sure. Contrastingly, movies like Maanagaram or Dhuruvangal Pathinaru that had got UA certification suffered because of skewed tax and policy of censor board.
Starting from 1st July when the GST was implemented, all of it had changed in Kollywood. There will be completely no entertainment tax ranging of 30 percent in Chennai and Coimbatore to 15 to 20 percent in other smaller towns and panchayats. Rather, there will be uniform rate of the range 12 to 18 percent in Tamil Nadu. In Tamil Nadu, the movie ticket has been sold for Rs 120 inclusive of tax. This may go up to Rs 134.40 or Rs 141.60.
Henceforth, there will be no film with tax exemption and there is no difference among U, UA or A certified films. Coming on to creative titles, there need not be any compromise henceforth.
It is likely that the GST will bring forth transparency through unified tax system at the box office. This will drastically reduce corruption.
