Blow for moviegoers: GST will cut taxes, but ticket fares set to rise in Kerala

The introduction of Goods and Services Tax (GST) from July 1 may not bring down movie ticket fares in Kerala though it will strip civic bodies of the power to impose taxes and control ticket rates.

Though the GST will reduce the tax burden on movie tickets, the associations in film field are planning to increase ticket fares from 10 to 15 percent.

Presently, the civic bodies are empowered to levy taxes on cinema ticket. Once the new tax regime takes effect this weekend, they will lose their power to control the ticket fares.

It is understood that organizations in the film industry have reached an understanding to exploit the situation and increase rates. They argue that the industry has been running at a loss.

Presently, entertainment tax in panchayats is 10 percent, 20 percent in municipalities and 25 percent in corporation areas. Apart from this a service tax of Rs 5 and cess of Rs 3 are charged.