The Tamil Nadu Film Chamber of Commerce on Friday announced an indefinite shutdown of theatres across Tamil Nadu from July 3 due to lack of clarity on the tax amount that will be levied after GST implementation.
The Goods and Services Tax (GST) comes into effect from Saturday.
"The state government should clear the confusion (on how much tax amount theatre owners will be charged) over the weekend. From Monday, all shows across theatres in the state will be suspended," Abirami Ramanathan, President of the Tamil Nadu Film Chamber of Commerce, told reporters here.
Multiplexes in the city are yet to open bookings for weekend movies as they are unsure if the government would levy entertainment tax over GST.
"If entertainment tax is added on top of GST, we will be forced to pay 53 per cent of the ticket rate as tax to the government. It won't be feasible for us as it will affect the livelihood of over 10 lakh families associated with the industry," he said.
The government has announced a GST rate of 28 per cent on cinema tickets above Rs.100.