Terming the decision of the State Government to permit 25% increase in rates of admission by cinema theatres for the Deepavali festival when new films get released as arbitrary, the Coimbatore Consumer Cause has observed that the State Government was always favouring the film industry and had not bothered to obtain the views of the public on the issue.
The TN Film Exhibitors Association has approached the High Court to direct the Government to increase the rates and also wanted to fix their own rates for the first 15 days for new films. Besides, it wanted increase in maintenance charge to Rs. 5. Based on high court order dated February 27, 2016, the Government considered their demand and rejected all of them on October 21, 2016. Following another petition and HC order on October 24, 2016, the Government with a detailed reasoning rejected the plea on January 3, 2017.
After rejecting their request twice in one year, the CCC said that it was not able to appreciate the reasons for 25% increase now – quoting 10% entertainment tax by local bodies.
Previously, the entertainment tax collected by the Commercial Tax Department was 30% which was part of the ticket rates for several years and that was paid by the consumers, of which 90% was given to the local bodies concerned. When the GST came into effect from July 1, 2017, the entertainment tax was subsumed under the GST @ 18% and 28%. In fact, the tax had been reduced by 12 per cent and two per cent. But many theatres increased their rates in the name of GST.
Even though most of the films were given exemption from ET by the Government, the theatres collected the same from the public and kept it with them from July 2006. “Because of this, we estimate that the local bodies were deprived of around Rs. 700-crore revenue. Without anybody’s approval, the theatres were collecting excess rate in the name of GST as if no tax was collected earlier - conveniently hiding the 30% entertainment tax collected from the public. No action was taken against the theatres,” it said.
In addition, the theatres collect exorbitant charges from the patrons in the food courts, canteen and snack shops since the public do not have any choice inside the theatre. Earlier, when the theatres sold at exorbitant rates over and above MRP, based on complaints many theatres were booked under “Packaged Commodity Rules”. Now, food items are not sold in packets.
Even through there is no provision to collect reservation charges – now around Rs. 30 is collected.
The film industry may face some problems; it is not because of the Government or the public. The industry, which reels in crores, wants everything to be recovered from the public. Because of this trend, nowadays poor and middle class people could not afford to come to the theatres.
It said the government always favoured the theatres and sought withdrawal of the 25% increase allowed to the theatres and fix the parking fees immediately as directed by the High Court.
The TN Film Exhibitors Association has approached the High Court to direct the Government to increase the rates and also wanted to fix their own rates for the first 15 days for new films. Besides, it wanted increase in maintenance charge to Rs. 5. Based on high court order dated February 27, 2016, the Government considered their demand and rejected all of them on October 21, 2016. Following another petition and HC order on October 24, 2016, the Government with a detailed reasoning rejected the plea on January 3, 2017.
After rejecting their request twice in one year, the CCC said that it was not able to appreciate the reasons for 25% increase now – quoting 10% entertainment tax by local bodies.
Previously, the entertainment tax collected by the Commercial Tax Department was 30% which was part of the ticket rates for several years and that was paid by the consumers, of which 90% was given to the local bodies concerned. When the GST came into effect from July 1, 2017, the entertainment tax was subsumed under the GST @ 18% and 28%. In fact, the tax had been reduced by 12 per cent and two per cent. But many theatres increased their rates in the name of GST.
Even though most of the films were given exemption from ET by the Government, the theatres collected the same from the public and kept it with them from July 2006. “Because of this, we estimate that the local bodies were deprived of around Rs. 700-crore revenue. Without anybody’s approval, the theatres were collecting excess rate in the name of GST as if no tax was collected earlier - conveniently hiding the 30% entertainment tax collected from the public. No action was taken against the theatres,” it said.
In addition, the theatres collect exorbitant charges from the patrons in the food courts, canteen and snack shops since the public do not have any choice inside the theatre. Earlier, when the theatres sold at exorbitant rates over and above MRP, based on complaints many theatres were booked under “Packaged Commodity Rules”. Now, food items are not sold in packets.
Even through there is no provision to collect reservation charges – now around Rs. 30 is collected.
The film industry may face some problems; it is not because of the Government or the public. The industry, which reels in crores, wants everything to be recovered from the public. Because of this trend, nowadays poor and middle class people could not afford to come to the theatres.
It said the government always favoured the theatres and sought withdrawal of the 25% increase allowed to the theatres and fix the parking fees immediately as directed by the High Court.