The Tamil Nadu state government has revised the entertainment tax for regional non-Tamil films to 15%, The Hindu reported on Wednesday.
In the first week of October, the state government had announced that it would impose an entertainment tax of 10% on upcoming Tamil films and 20% on non-Tamil productions. After a strike called on October 3 by the Tamil Nadu Film Producers Council and the Multiplex Association of India, the local tax on Tamil productions was brought down to 8%, paving the way for the release of the Vijay-starrer Mersal on October 18.
The move to reduce the tax on non-Tamil regional films is expected to temporary relief to producers outside the state. “Golmaal Again is likely to hit the theatres this Friday,” a multiplex owner told the publication. “We are keeping our fingers crossed because once a Hindi film releases, it could be followed by many others. So, we are hopeful that the release of Golmaal Again will end the stalemate.”
The tax on English- and foreign-language films, however, remains at 20%.
The government order has also specified that a 7% tax has to be paid for the re-release of older Tamil films. A 10% tax will be levied on films in other Indian language as well.