No shows at single screens tomorrow

PUNE: The proposed strike by multiplex owners, distributors and film producers on February 23 to protest against the levy of 10% service tax on, has been deferred, said Arvind Chaphalkar, secretary of the Multiplex Association of India.
The decision was taken after a delegation of the association met Union finance minister, Pranab Mukherjee, in New Delhi on Sunday.However, single screen theatres across the city will go ahead with the protest and have cancelled screenings on February 23.
"Thanks to intervention from the information and broadcasting minister, Ambika Soni, the association members met the Union finance minister, who assured us that the matter would be looked into after the Union budget," said Chaphalkar.
He said that the association decided to protest because the levy of the service tax will increase the production budget of films, and will indirectly result in an increase in ticket prices. The audience would have had to bear the burden, said Chaphalkar, who was a part of the delegation.
Had the multiplexes gone ahead with the protest on February 23, each one of them would have suffered a loss up to Rs 1.5 lakh, Chaphalkar added. "As per provisions in the constitution, it is only the state government that can charge such a tax. But, here we see the Union government entering in state-related matters by trying to levy tax. Also, the service tax provisions have not been implemented properly," he said.
As of now, air-conditioned and non-air-conditioned single screen theatres are paying service tax of 6% and 5.5% respectively. "We are going ahead with the protest by cancelling all our shows on February 23 because the proposed increase will push ticket prices further up," said Shyamrao Pawar, manager of Neelayam Talkies in Sadashiv Peth.
The theatre charges Rs 60 (balcony) and Rs 40 (upper stall) for Hindi films, and Rs 45 (balcony) and Rs 30 (upper stall) for Marathi films. "The additional service tax will make ticket prices unaffordable," Pawar added.
A source at Westend theatre in Camp added, "The four-odd screenings at our theatre for February 23 stand cancelled."