It’s curtains for cinema, courtesy taxes, multiplexes

Movie theatres are closing down fast in Ahmedabad. In the past decade, about 27 of the total 57 theatres have shut shop. Theatre owners blam...

Movie theatres are closing down fast in Ahmedabad. In the past decade, about 27 of the total 57 theatres have shut shop. Theatre owners blame this on the government and municipal taxes and, of course, the boom in multiplexes.

Cinema owners have been discussing ways to rescue the ‘‘dying industry’’. They have even filed a writ petition with the Gujarat High Court demanding an exemption from the government and municipal taxes. However, the judgement may come too late. Many cinema owners believe that over 75 per cent of the existing halls may close down in the next few months.

Madhya Pradesh theatres face the same tragedy

JABALPUR: Heavy entertainment tax imposed by Madhya Pradesh government has dealt a blow to a large number of theatre owners in the Mahakoshal region with many of them closing down their business. “In Jabalpur, half a dozen cinema houses were either closed or were on verge of closure,” says an office bearer of the exhibitors association.

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With more than a dozen cinema houses in Mahakoshal region closed, the state government is losing out on revenue, which otherwise would have generated entertainment tax, official sources said.
Cinema houses in Jabalpur, Chhindwara, Narsinghpur and other adjoining districts, that were already facing tough times due to the advent of cable television, have downed shutters due to heavy taxation, they added. (PTI)

Yogesh Oza, manager of Relief Cinema, said: ‘‘One of the prime factors for the closedown are high government and municipal taxes. Another reason is that post-earthquake and post-riots, cinema-goers have reduced in numbers.’’

He added: ‘‘We pay around Rs 10 to 12 lakhs in taxes annually. We have been incurring losses for the past two years.’’

‘‘Narendra Modi says Apnu Gujarat Agvu Gujarat, but there is nothing like Agvu as the multiplexes which have sprung up in the city have been exempted from paying 100 per cent government taxes,’’ alleged Rupam Cinema owner Yogesh Seth.

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‘‘We have filed a writ petition in the Gujarat High Court demanding tax exemption from the state government. If the judgement comes in our favour it is good, otherwise the fate of cinema halls in Ahmedabad will only worsen,’’ added Seth. ‘‘The state government should seriously think of abolishing the taxes. These loss-making policies of the government led to the collapse of the powerloom industry here, the same is going to happen to entertainment industry too.’’

The uncertain fate of the cinema halls was further highlighted recently when the five decade-old Advance Cinema at Lal Darwaja closed down. Girish Shah, the owner, once ran a chain of 22 cinema halls across the state.

In the span of three to four years, the number cinema halls has been reduced to just eight. Of these, one of the four halls which are within the city limits is also slated to close down soon.

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