The theatre owners chose to cancel all the shows from 3rd of July after the state government imposed 30 percent entertainment tax.
Going ahead with their strike announced on Friday, the exhibitors knocked at the doors of Chief Minister K Palaniswami seeking a review of a 30 per cent Entertainment tax, charged by the city corporation, citing their "inability" to pay both taxes.
After the implementation of GST on July 1, 2017, there had been many people supporting and also opposing the move or step taken by the Narendra Modi government.
According to the GST roll-out, theatres which sell tickets below Rs 100 should pay 18 per cent tax and theatres, especially multiplexes, which sell tickets above Rs 100, should pay 28 per cent tax. The decision to down shutters was confirmed at a meeting of representatives of the Tamil Nadu Film Chamber of Commerce, district-level theatre owners associations and the federation of distributors in Chennai on Sunday. The GST, which mainly aimed to eliminate the tax-on-tax structure now has the Tamil Nadu film industry on its knees.
However, GST will make India one with its conventional procedures and rate taxes.
Indefinite strike over GST: Nearly 1,100 theaters in and around Tamil Nadu are on indefinite strike over GST. The leader of Tamil Nadu's Film Producers Council, Vishal told ANI, "obviously, there will be unfavorable impacts to each industry, film industry, as well as all parts of business, particularly provincial silver screen, which is settled in the most elevated section 28 percent". That meant almost 80-90% of the Tamil films released per year would enjoy these benefits.
Director Shankar, whose movie Enthiran 2.0 will be released in 2018, tweeted: "48-58 per cent is too much tax". They (both AIADMK and DMK) have been using the Entertainment Tax as a method to control the film industry.
Ramanathan added that members of the association had met Jayakumar earlier in the day and while there was no clarity on when film screenings would resume, they were hoping for a prompt response.
"They sought withdrawal (of local body tax)".
Actor-filmmaker Kamal Haasan said the industry would speak with "one voice" on the decision.