2 hrs ago
Cinepolis India MD Warns 570% Cinema Tax Hike Could Reduce Footfall
A news report says the government may sharply increase taxes on cinema tickets.
Cinepolis India executive Devang Sampat says cinema companies have not received an official notice about the proposal.
He says the industry wants taxes to be more consistent and business rules to be easier to manage.
Sampat says even a small ticket-price increase can make some people stop going to the cinema.
Cinema attendance has not yet returned to where it was before Covid.
If fewer people buy tickets, cinemas, filmmakers, and the government could all receive less money.
He is especially worried that small films could get fewer showings.
He says India should encourage investment in more cinema screens instead.
Cinepolis India Managing Director Devang Sampat says the industry has received no official communication about the reported tax proposal.
Sampat says the industry plans to raise concerns about tax uniformity, ease of doing business, and the effect on ticket prices.
He says even a Rs 3-4 increase in average ticket prices can reduce cinema attendance.
Cinema footfall has not returned to pre-Covid levels, while India has around 10,000 screens and single-screen cinemas are closing.
Sampat warns that lower attendance could affect cinemas, filmmakers, other stakeholders, and government revenue, particularly for small-budget films.
- Who
- Devang Sampat, managing director of Cinepolis India and a member of the Multiplex Association of India.
- What
- Sampat warned that a reported proposal to raise cinema ticket taxes by nearly 570% could raise prices and reduce attendance.
- Where
- India; Sampat specifically discussed Mumbai and its possible effects beyond Maharashtra.
- When
- The proposal was reported in media; the article gives no date for when it might take effect.
- Why
- Sampat says higher prices could discourage audiences, reduce cinema footfall and affect industry and government revenue.
Key facts
- Reported tax increase
- Nearly 570% on cinema tickets
- Industry representative
- Devang Sampat, Cinepolis India managing director and Multiplex Association of India member
- Official communication
- Sampat said the industry had received none about the reported proposal.
- Price sensitivity
- Sampat said a Rs 3-4 increase in average ticket price can begin to reduce footfall.
- Attendance
- Cinema footfall has not recovered to pre-Covid levels, according to Sampat.
- Screen count
- Sampat said India has around 10,000 screens.
- Industry concerns
- One Nation, One Tax, ease of doing business, and effects on consumers and attendance.
Quotes
Devang Sampat
Cinepolis India managing director and Multiplex Association of India member
“We are going to the government with our concerns, and there are three main points. The first is that we all talk about 'One Nation, One Tax'. If different kinds of taxes are imposed, it weakens the very purpose of 'One Nation, One Tax'. The second issue is that it could also affect ease of doing business in India, because the tax structure will become more complicated.”
NDTV
“The most important thing is that ticket prices in India are very sensitive. In our research, we have seen that even if the average ticket price increases by just Rs 3-4, footfall starts coming down.”
NDTV
Sources
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