The Tamil Nadu government has decided to reduce the local entertainment tax by two per cent to eight per cent after talks with the movie industry, a Tamil Film Producers Council official said on Friday.
Speaking to reporters here the official, Vishal, said the decision on tax reduction follows a meeting of Chief Minister K. Palaniswami with Tamil movie industry representatives.
The tax rate announced earlier was 10 per cent, which was in addition to the 28 per cent Goods and Services Tax (GST).
However the 20 per cent tax on non-Tamil movies would continue.
Following opposition to the entertainment tax, theatres in Tamil Nadu did not release any new movie.
According to Vishal, theatres will not charge more for the tickets than fixed by the government and they would also sell eatables and other items only at the printed maximum retail price.