The Brihanmumbai Municipal Corporation has proposed raising the entertainment tax on Mumbai's cinema halls and multiplexes by as much as 570 per cent, a move the All Indian Cine Workers Association has urged Chief Minister Devendra Fadnavis to reject.
Under the proposal, the tax on air-conditioned cinema halls and multiplexes would rise from Rs 60 to Rs 400 — a 570 per cent jump — while non-AC halls would face a 400 per cent hike, according to a Times Now report. AICWA president Suresh Shyamlal Gupta wrote to Fadnavis on September 26 and was expected to meet him on September 28.
"If the government doesn't listen, the AICWA will protest. We want to request the CM to reduce the taxes," Gupta said.
Industry warns of closures
The industry fears higher ticket prices would drive down footfall and force more theatre closures, hitting theatre owners, producers, distributors and cine workers alike. Gupta said several theatres in Maharashtra have already shut down.
The proposal lands ahead of two major releases: Ramayana: Part 1, starring Ranbir Kapoor, Sai Pallavi and Yash and directed by Nitesh Tiwari, arriving in cinemas this Diwali, and King, starring Shah Rukh Khan and directed by Siddharth Anand, releasing on December 24, 2026.
Distributor Raj Bansal warned of severe consequences: "With Ramayana: Part 1 and King coming, if the hiked tax is imposed, the Hindi film industry will be wiped out. How can the common man afford such prices?"
"Too early to speculate"
Trade analyst Atul Mohan struck a more cautious note, saying it was too early to speculate on the proposal's fate. He suggested the government's perception of the industry's earnings came from "false box office collections that producers have been putting out".
Sources:
Ahead Of Ramayana, King, BMC Proposes 570 Per Cent Entertainment Tax Hike; AICWA Appeals To Maharashtra CM
Under the proposal, the tax on air-conditioned cinema halls and multiplexes would rise from Rs 60 to Rs 400 — a 570 per cent jump — while non-AC halls would face a 400 per cent hike, according to a Times Now report. AICWA president Suresh Shyamlal Gupta wrote to Fadnavis on September 26 and was expected to meet him on September 28.
"If the government doesn't listen, the AICWA will protest. We want to request the CM to reduce the taxes," Gupta said.
Industry warns of closures
The industry fears higher ticket prices would drive down footfall and force more theatre closures, hitting theatre owners, producers, distributors and cine workers alike. Gupta said several theatres in Maharashtra have already shut down.
The proposal lands ahead of two major releases: Ramayana: Part 1, starring Ranbir Kapoor, Sai Pallavi and Yash and directed by Nitesh Tiwari, arriving in cinemas this Diwali, and King, starring Shah Rukh Khan and directed by Siddharth Anand, releasing on December 24, 2026.
Distributor Raj Bansal warned of severe consequences: "With Ramayana: Part 1 and King coming, if the hiked tax is imposed, the Hindi film industry will be wiped out. How can the common man afford such prices?"
"Too early to speculate"
Trade analyst Atul Mohan struck a more cautious note, saying it was too early to speculate on the proposal's fate. He suggested the government's perception of the industry's earnings came from "false box office collections that producers have been putting out".
Sources:
Ahead Of Ramayana, King, BMC Proposes 570 Per Cent Entertainment Tax Hike; AICWA Appeals To Maharashtra CM
