Tamil Nadu Government agrees to lower the entertainment tax: Huge relief for producers of new releases

Vishal, President of TFPC, made this announcement after his meetings with government officials regarding this and said that the government has agreed to lower the entertainment tax.

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The Tamil Film Producers’ Council has been untiringly negotiating with the Tamil Nadu government regarding the entertainment tax which had stalled the released of many new films in Tamil. The Producers’ Council had announced that no films will be released till the time the government rolled back the extra tax which will only incur losses to the producers and distributors. And after a series of meetings with government officials and ministers, the Tamil Film Producers’ Council have finally managed to convince the government to lower the entertainment tax, bringing it down to 8% from proposed 10%.

Vishal, President of TFPC, made this announcement after his meetings with government officials regarding this and said that the government has agreed to lower the entertainment tax. With this development, the producers call-off the halt on new films which was announced early this week. The multiplexes across Chennai were also on strike protesting the levy of tax and with the latest developments, the strike has been called off by them too.

This will clear the decks for all the films releasing on Diwali, which includes the biggest release of the year in Tamil cinema – Mersal. The aftermath of this strike and halt of release might have an impact on the films which were held back during the strike which will now have to compete with a big film and other films which would have been planned to release around the same time. More details regarding the same are awaited over coming days.

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