Film body opposes BMC’s 570 percent tax hike, warns of impact on industry
28 September,2026 07:57 AM IST | Mumbai | Upala KBR
After BMC proposes a steep hike going up to 570 per cent in entertainment tax, film body appeals to Maha CM Devendra Fadnavis to dismiss it; trade says move will affect the industry and audience
A still from ‘Ramayana: Part 1’. Pics/Youtube, PTI
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Days after the Brihanmumbai Municipal Corporation (BMC) proposed an entertainment tax hike of up to 570 per cent across theatres and performing arts venues, the All Indian Cine Workers Association (AICWA) has strongly opposed the idea. Suresh Shyamlal Gupta, President, AICWA, shot off a letter to Maharashtra Chief Minister Devendra Fadnavis, urging him to dismiss the hike. In the letter dated September 26 – a copy of which is in mid-day’s possession – Gupta noted that the hike, if put into effect, will adversely impact theatre owners, producers, distributors, and cine workers as well as the audience.
Big-ticket movies, including âKing’ and âRamayana: Part 1′, are set to release in the next few months
Talking to mid-day, Gupta said, “Higher taxation can increase ticket prices, reduce audience footfall, and affect film production and employment opportunities for workers, technicians, and junior artistes. AICWA appeals to the Maharashtra Government to stop this proposed tax hike. Many theatres have already shut down in this state, and if this tax is passed, many more will.”
Gupta hopes to have a meeting with Fadnavis on September 28. “If the government doesn’t listen, the AICWA will protest. We want to request the CM to reduce the taxes.”
Per the BMC’s proposal, the entertainment tax on air-conditioned cinema halls and multiplexes would increase from R60 to Rs 400, indicating a 570 per cent hike. A 400 per cent increase has been suggested for non-AC cinema halls.
With big releases lined up, distributor Raj Bansal is worried that such a surge will result in steep ticket prices. “With Ramayana: Part 1 and King coming, if the hiked tax is imposed, the Hindi film industry will be wiped out. How can the common man afford such prices? Also when the central government imposed GST, it was clear that no state would impose any taxes on entertainment. So, how can Maharashtra tax films separately?”
Trade analyst Atul Mohan noted that one should not speculate at this stage, adding, “I feel this happened because of the false box office collections that producers have been putting out. The government feels if the industry is raking in R100 crore [with a film], let’s tax them.”
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brihanmumbai municipal corporationdevendra fadnavisTheatrebollywood newsEntertainment NewsRamayana
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