Finance Minister, Arun Jaitley in a press meet said that GST (Goods and Services Tax) of 28% Tax will be included on the sale of Movie tickets. This may be good news for people in places such as Bihar, Maharasthra, UP etc where entertainment tax is as high as 45% whereas it’s a huge disadvantage to Telugu states where entertainment tax is as low as 12%
In many south Indian states, entertainment tax is low and also the ticket prices are capped appropriately so that it encourages people to watch the movies in theaters rather than pirated movies in their home. This arrangement was both beneficial for the cinemagoers and the filmmakers, since major chunk of ticket revenues come from B & C centers rather than from Multiplex.
But this sudden increase in tax and ticket prices would definitely force the common man to think twice before buying movie tickets as they are no longer affordable for all. And this inturn would also benefit piracy makers as people may opt for watching piracy movies to reduce the burden on their pockets. It high time for Telugu film industry bigwigs to raise this issue with the government before the serious damage is done, as not every movie is Baahubali where people only want to watch them in theaters.