In a statement, President of the Producers Council Vishal said, "We will have a meeting today (Wednesday) to discuss the next course of action. No new Tamil films will release this week as we feel the additional 10 per cent Local Body Entertainment Tax (LBET) above the GST will disable the industry."
On Tuesday, the Multiplexes Association of India (MAI) directed multiplexes such as PVR and INOX here to shut shop against double taxation. "All multiplexes operating in Chennai have announced that they are going on strike starting today (Wednesday)," read a statement from MAI.
According to the statement, the double taxation defeats the purpose of the GST model and goes against the principle of One Nation One Tax.
MAI President Deepak Asher appealed to the Tamil Nadu Chief Minister K Palaniswani and Great Chennai Corporation (GCC) Commissioner to consider their request to withdraw the LBET levied on the film exhibition industry in Chennai immediately.
Vishal said they were ready to go on indefinite strike if the government did not consider their request. "Various stakeholders have already explained their situation to the government. Unfortunately, 10 per cent tax has been levied without regulating the ticket prices. This will only increase the losses for the producers and pave way to more confusion," Vishal added.