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Tamil Nadu Halves Local Cinema Tax to Boost Struggling Film Industry

This relief measure aims to ease post-pandemic financial strain on Tamil cinema stakeholders by lowering ticket costs ahead of Kamal Haasan’s 'Thug Life' release.

Overview

  • The government’s order under the Tamil Nadu Local Authorities Entertainments Tax Act, 2017 cuts the Local Bodies Entertainment Tax from 8.6% to 4% effective May 7, 2025.
  • Cinema operators expect reduced ticket prices to drive higher footfall in the weeks leading up to major releases.
  • Film Employees Federation of South India thanked Chief Minister MK Stalin, Deputy CM Udhayanidhi Stalin and Minister MP Saminathan for heeding industry appeals.
  • Actor-producer Kamal Haasan had urged officials to ease the tax burden on Tamil films ahead of his June 5 release, 'Thug Life'.
  • The tax relief addresses ongoing post-pandemic financial strain and rising production costs facing producers and exhibitors.