Cinema hall owners in MP end strike without withdrawal of entertainment tax

Cinema hall owners in Madhya Pradesh called off their nearly month-long strike Wednesday evening, though no decision has been taken yet on their demand of withdrawal of entertainment tax.

No new films were being released in over 400 theatres in the state since October 5 in protest against the entertainment tax levied by local bodies.

"We have received a message that the strike has been withdrawn. The organisations of film producers and multiplex owners were leading this strike," said Jai Prakash Chouksey, president of Central Cine Circuit, an association of film distributors.

The government requested local municipal bodies to review the decision to levy entertainment tax on cinema tickets, but no further decision could be taken as the model code of conduct came into force after the Assembly elections were declared, he said.

Theatre owners have said the entertainment tax, levied over and above the Goods and Services Tax, is an additional burden on the sector and is contrary to the single tax system promised under the GST regime.

Chouksey said that it is hoped that necessary decision would be taken after the elections.