AICWA Calls for Rejection of BMC's Proposed Theatre Tax Increase

The All Indian Cine Workers Association (AICWA) has voiced strong opposition to the Brihanmumbai Municipal Corporation's (BMC) proposal to significantly raise the entertainment tax on theatres. The association has urged Maharashtra Chief Minister Devendra Fadnavis to reject this proposal, which could see taxes on certain cinema screenings soar by as much as 570%. This move, if approved, would impose a considerable financial burden on both theatre owners and moviegoers alike.

Under the proposed changes, the entertainment tax for air-conditioned (AC) cinemas and multiplexes would jump from ₹60 to ₹400 per show. For single-screen AC theatres, the tax is set to increase from ₹60 to ₹200, while non-AC cinemas could see their tax rise from ₹45 to ₹90 per show. Additionally, the tax on drama and other entertainment programs is proposed to rise from ₹25 to ₹100 per show. However, these revised rates are yet to receive the necessary approval from the Urban Development Department of the Maharashtra government.

In its statement, AICWA highlighted the potential negative impact of this tax increase on the film industry, which is already grappling with various challenges. The association emphasized that higher taxation could lead to increased ticket prices, thereby reducing audience attendance and adversely affecting film production and employment for numerous workers, technicians, and artists. AICWA's concerns were echoed in a post on X (formerly Twitter), where they called for immediate action from the state government.

AICWA President Er. Suresh Shyamlal Gupta reiterated the association's appeal to the Maharashtra government, urging them to halt the proposed tax hike to protect the livelihoods of millions of cine workers. The association's statement underscored the critical role that a stable tax environment plays in sustaining the film industry, particularly during challenging economic times.

As the proposal awaits government approval, the implications for the film industry remain significant. Stakeholders are concerned that increased entertainment taxes could elevate operational costs for theatres, further straining ticket prices and potentially leading to a decline in audience engagement. The AICWA's call to action highlights the urgent need for the Maharashtra government to consider the broader consequences of such tax increases on the film sector and its workforce.