Theatre owners across Tamil Nadu have long been urging the government to reduce the local body entertainment tax and permit the screening of cricket and other sports events in cinema halls. With declining box office performance and the inconsistent success rate of films, theatre maintenance has become increasingly difficult. Moreover, audiences are not turning up in large numbers for every release, adding to the challenges.
Now, theatre owners finally have a reason to cheer. The Tamil Nadu government is reportedly considering a significant relief measure by reducing the local body entertainment tax from the current 8% to 4%. This move is expected to ease financial pressure on exhibitors and help them sustain operations during dull film seasons.
In another welcome development, the state government is also said to be granting permission for screening live sports events, including IPL and other major cricket matches, in theatres. This is expected to attract more footfall and generate alternative revenue, especially during peak sporting seasons.
An official Government Order (GO) regarding both decisions is expected soon. These policy changes, once implemented, will provide much-needed support to the theatre industry and bring a new wave of audience engagement beyond cinema screenings.
