’Reduce tax or we go on strike’

Single screens to remain closed for 7 days to protest rise in show tax; owners say it will lead to loss of revenue for government as well

'Reduce tax or we go on strike'

Single screens to remain closed for 7 days to protest rise in show tax; owners say it will lead to loss of revenue for government as well

At least 630 single screen owners in the state, including 20 from the city, will go on a strike for a week to oppose the proposed increase in show tax from 10 to about 50 per cent. Apart from this, they are demanding the abolition of entertainment tax which is currently 45 per cent.

Taxing times: Single screens will shut shop from March 25 to April 1.
Pic/Jignesh Mistry

As a result, all single screen theatres will remain shut till March 31, and if the issue does not get sorted out, the seven days 'bandh' may even exceed for next 20 days. Sadanand Mohol, president of Poona Exhibitors Association (PEA) said, "It is sad that the government does not understand that it'll also lose returns if we shut down. During the World Cup our occupancy has been just 25 per cent and increasing taxes will further affect our business."

Balkrishna Bhide, manager, Prabhat Cinema, said "Though we have lowest ticket rates of Rs 30 and Rs 40, we are giving Rs 10-12 lakh everyday because of taxes." Envisaging the situation in the coming week, he said, "Prabhat cinema is a Mecca of Marathi movies and more than 12 films are releasing by April 1. If the bandh persists, the movies will not generate revenue."

Apart from the opposing the proposed increase in taxes, single screen theatre owners are also urging the government to allow them to change their profession. According to BPMC Act of 1966, the cinema owners lose the possession of theatres if they decide to change careers. "This is our fundamental right to choose our own way of earning money which the government is blatantly denying," Bhide said.

Amid all this, Deepak Kudale,u00a0 former president of PEA, looked optimistic. "Deputy Chief Minister Ajit Pawar has assured us he will look into the pending issues of the single screen theatres and come out with an amicable solution. He will call the owners for a meeting to discuss the matter."

u00a0Multiplex owners too, complained that the taxes would not just affect the single screen revenue collection, but theirs too. They said that the increase in taxes would decrease the seat occupancy. Prakash Chaphalkar, partner, City Pride, Kothrud multiplex said, "The proposed increase is irrational. Even in Mumbai, the show tax is Rs 60 but in Pune it is Rs 100. We won't be able to sustain customers if it increases further." he said.

Oo of single screens
In Pune: 20
In Maharashtra: 631
In India: 10,151