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Home > Business > PTI > Report


1,200 cinema halls in Maharashtra to shut down from May 16

May 02, 2003 19:38 IST

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Over 1200 cinema halls in Maharashtra will down their shutters from May 16 with their owners pressing for reduction in taxes, increase in seating capacity and simplification of rules for licence renewal.

The bandh call has been given by the Cinematograph Exhibitors Association of India, Theatre Owners Association, Central Circuit Cine Association, Amravati, and Marathawada Exhibitors Association, Aurangabad.

In a memorandum submitted to Chief Minister Sushilkumar Shinde, the associations have pointed to the 'pathetic collections which were dwindling day by day, under utilisation of seating capacity, high taxes and maintenance costs,' as reasons for calling for a state-wide closure of cinema halls.

According to theatre owners, rates of entertainment tax in the state were very high compared to other states. Punjab had reduced the taxes to 30 per cent, they said in a release.

The demands also include permission of collecting tax-free service charge of Rs 2 for touring cinema and Rs 5 per ticket for all cinemas, charging electricity provided to cinema halls at industrial tariff and simplification of rules and procedures.

Granting permission to any single cinema hall desiring to convert into multiplex with a minimum of two screens with tax concessions was also one of the demands.

The proposed closure comes close on heels of producers deciding not to release new films since April 1.


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