The Tamil Nadu state government has increased entertainment tax (ET) in cinema theatres by 100 %. Cinema theatres in Tamil Nadu will have to pay double the tax on every ticket sold. At the moment ET in 10 Corporations and 22 Municipalities is 15 % of the gross ticket amount which has been increased to 30%. In Panchayat areas the ET is currently 10%, which has been increased to 20%. The new ET is going to badly effect box-office collections, as the government will take away an additional 15 %, leaving the industry to fend for itself.
Story first published: Thursday, September 15, 2011, 15:49 [IST]