Workers' body opposes BMC's 570% entertainment tax hike demand
What's the story
The All Indian Cine Workers Association (AICWA) has voiced its opposition to the Brihanmumbai Municipal Corporation's (BMC) proposed entertainment tax hike of up to 570%. AICWA president Suresh Shyamlal Gupta met BMC Deputy Municipal Commissioner Prashant Gaikwad to discuss how this increase could adversely affect filmmakers, theater owners, cine workers, and audiences, per Mid-Day. The proposed 570% increase would apply to air-conditioned cinema halls and multiplexes.
Tax implications
AICWA urges CM Fadnavis to reconsider
Gupta told the portal: "Gaikwadji said that the entertainment tax hike had been proposed in 2017, but they wanted to implement it now. I was told that when films are earning hundreds and thousands of crores, the tax can be levied. But I explained to him that out of 98 movies, only two may be earning such profits."
The AICWA has been vocal in its opposition to this move, urging Maharashtra Chief Minister Devendra Fadnavis to reconsider the decision.
Industry impact
'It seems BMC and government want to shut down theatres'
Gupta also expressed concern that the proposed tax hike could lead to an increase in ticket prices, making it difficult for audiences to access films.
"If the hike is put into effect, it will adversely impact theatre owners, distributors, cine workers, and the audience. I told Gaikwadji that it seems the BMC and the government want to shut down theatres so that OTT platforms can benefit."
Tax rationale
Tax to increase for non-AC halls, performing arts tickets, too
As per Gupta, Gaikwad has agreed to forward the AICWA's concerns to BMC Municipal Commissioner Ashwini Bhide, and Gupta is hopeful of a meeting with Bhide.
"I'm also planning to meet CM Devendra Fadnavisji this week," he added.
To recall, BMC had proposed an increase in tax from ₹60 to ₹400 per ticket for AC halls, from ₹45 to ₹200 per ticket for non-AC halls, and from ₹50 to ₹100 per ticket for performing art shows.