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Cine Workers Oppose BMC's Proposed Entertainment Tax Hike for Mumbai Theatres
- •The All-Indian Cine Workers Association (AICWA) has opposed the Brihanmumbai Municipal Corporation's (BMC) proposed hike in per-show entertainment tax on cinema halls and other entertainment venues in Mumbai.
- •AICWA president Dr Suresh Shyamlal Gupta wrote to Chief Minister Devendra Fadnavis, stating the hike would burden an industry already struggling with declining film production, changing audience patterns, and OTT competition.
- •The proposed tax increase includes AC cinemas from ’60 to ’400 per show, single-screen AC cinemas to ’200, and non-AC cinemas from ’45 to ’90 per show.
- •The association argues that higher taxes could lead to increased ticket prices, reduced audience footfall, and make producers hesitant to invest in new films, impacting the wider film industry employment chain.
- •AICWA has appealed to the Chief Minister to intervene, stay the proposed tax hike, and consider reducing taxes to provide relief to theatre owners and make cinema more affordable.
Key Questions Answered
The BMC has proposed increasing the per-show entertainment tax for AC cinemas from ₹60 to up to ₹400, for single-screen AC cinemas to ₹200, and for non-AC cinemas from ₹45 to ₹90. The overall proposal includes a massive up to 570% hike across entertainment venues awaiting approval from the state government's Urban Development Department.
The All-Indian Cine Workers Association (AICWA) argues that the tax hike will increase ticket prices, lower audience footfall, and pressure an industry already struggling with declining film production, changing audience habits, and OTT competition. In a letter to Chief Minister Devendra Fadnavis, AICWA president Dr Suresh Shyamlal Gupta urged the government to withdraw the proposal and protect the wider employment chain.
Under the BMC proposal, taxes for entertainment programmes like drama and jalsa are slated to rise from ₹25 to ₹100, while existing rates for circuses and funfairs are also set to increase. Additionally, ticket prices for performing arts like plays and concerts could experience sharp spikes if the civic administration's tax revisions receive final approval.
