Protesting the Tamil Nadu Government's levy of 10% Entertainment tax on all new Tamil films and 20% on new non-Tamil films in excess of the GST, many multiplex theaters across Chennai are starting an indefinite strike from today (October 3, 2017). Inox and PVR will not be screening any films from today but SPI Cinemas one of the premium multiplex chain in Chennai has not yet decided to taking part in the strike.

It is worth noting that a few months back theater owneres across the state went on a strike for a few days against the government decision to levy of 30% local body tax apart from GST. The strike was withdrawn after the Government formed a committee to discuss the issue with all the stakeholders concerned on deciding on the percentage of tax. Now the Government has fixed 10% tax for new Tamil films. The GST rate for movie tickets above Rs.100 is 28% and in addition they will have to pay 10% towards local body or entertainment tax. This comes to effect from September 27, 2017.