Abolish all the taxes except Goods and Services Tax (GST) on Cinema, said a study by industry body Associated Chambers of Commerce of India (ASSOCHAM) in a study conducted with PricewaterhouseCoopers (PwC). All cinema tickets above Rs100 are charged 28% GST in addition to local taxes. Tickets below Rs100 are charged 18% GST. It also said that cinema is no longer a luxury, especially in larger cities. "While the GST legislation classifies access to cinema as a luxury and puts it under the highest tax rate of 28 per cent (tickets costing above hundred rupees), but considering the socio-economic developments around the world, the cinema may not really be a luxury, at least in metro cities," noted the ASSOCHAM-PwC joint report titled, 'An overview of the impact of GST on film industry – what, why and how.' Local cinema owners said that they have to pay 'Show Tax' of Rs75 per show and Property Tax which is to the tune of Rs15-50 lakh per annum. Moreover, they have to pay 25% electricity duty and the electricity bill runs is about Rs15 lakh per month. "After GST, all other taxes should be removed. Moreover, there should be uniform tax rate for cinema tickets," said Niraj Ahuja, general manager of Wide Angle multiplex. He said Multiplex Association has repeatedly represented to GST Council and the state government but so far no action has been taken.

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