No Movie Release in MP Until Elections Results

Until the announcement of the assembly poll results on December 11, no film will be released in Madhya Pradesh.

Days before the announcement of the state assembly elections date, civic bodies of Bhopal and Indore had levied 5 to 15 per cent extra tax on entertainment, besides 18 per cent and 28 per cent GST on entertainment.

The unprecedented hike had irked the cinema hall owners’ association, and they had announced indefinite strike since October 5, demanding withdrawal of the newly imposed tax. The strike has completed 14 days on Friday, but the cinema hall owners are in no mood to end the strike, and pay 43 per cent entertainment tax to the government.

However, due to the election code of conduct in place, neither civic bodies nor the state government can take any action to end the strike. In this context comes the ban on the film releases.

Strike of theatre owners during the two most crucial festivals – Dussehra and Diwali, which bring the most profitable season for the film industry – is likely to incur losses worth Rs 40 to 50 crore. The industry in MP has already incurred losses of around Rs 5 crores, according to the Central Circuit Cine Association (CCCA).

There are more than 450 movie theatres in Madhya Pradesh – multiplexes as well as single screens. Initially, the strike was called for by the Multiplex Association of India (MAI), but later the Central Cine Circuit Association as well as the Producers Guild of India joined the club. 

The Bhopal Municipal Corporation (BMC) was among the first civic bodies in the state to impose five per cent tax on tickets up to Rs 100, 10 per cent on tickets between Rs 100 and Rs 200, and 15 per cent on tickets costing more than Rs 200.

With GST applicable at the rate of 28 per cent for cinema tickets of more than Rs 100 and an additional 15 per cent municipal tax, total tax on a multiplex ticket has gone up to 43 per cent. Price of the ticket would not be hiked, but the margin of the cinema hall and multiplex owners would be decreased[PK1] . Besides, the BMC also takes a tax of Rs 200 on every show from all multiplexes and single screen cinema halls, which is Rs 50 per show in other parts of MP.

Basant Lodha, director of CCCA – which comprises movie theatre owners, distributors, exhibitors and producers – stated that they have support of 400 single screens and multiplexes from across the state. “It is unfair that we are being told to pay dual tax on entertainment, when it was made clear that the Goods and Services Tax (GST) was levied for single taxation.”

“Though, we are apprehensive that there will be any clear decision until the election, we have still filed a PIL in the MP High Court against the civic bodies’ decision,” he said.

Amit Kasliwal, owner of a single screen theatre in Indore, said, “If the taxation becomes so high, single screens will be the worst affected, as they cater to people who want to watch movies at an affordable price.”

The civic body officials, however, remain firm on their decision. An official from the Bhopal Municipal Corporation (IMC) stated, “The decision to withdraw or suspend the tax is now in the hands of the government. As of now, it’s just a waiting game, and right now, we are not in a position to comment on it.”

Several meetings of different associations have taken place in Bhopal and Mumbai to chalk out a solution or end the strike until the elections, but the producers’ lobby has refused to end the strike.