Mumbai Film Tickets Face Price Hike with BMC's Entertainment Tax Plan
The Brihanmumbai Municipal Corporation (BMC) has announced a budgetary decision that could significantly increase the cost of cinema tickets in Mumbai. Starting after September 2026, the BMC plans to impose an entertainment tax on cinema halls, a move that has sparked concern among industry stakeholders and moviegoers alike. This tax, which was not levied in Maharashtra following the introduction of the Goods and Services Tax (GST), is expected to directly impact ticket prices, making films less affordable for many families.
Industry Leaders Voice Concerns Over Tax Implications
Nitin Datar, president of the Cinema Owners and Exhibitors Association of India (COEAI), highlighted that while the GST regime allowed states to collect entertainment tax, Maharashtra had abstained from doing so. "Many states in the South were levying entertainment tax, but Maharashtra was not," Datar explained. He emphasized that the imposition of this tax in Mumbai is almost certain to lead to higher ticket prices. The increase will vary based on the tax percentage; for instance, a 10% levy could raise a Rs 100 multiplex ticket to Rs 110. In single-screen theatres, where tickets often cost between Rs 30 and Rs 80, even a small increase of three or four rupees could be burdensome for low-income families.
Challenges to the 'One Nation One Tax' Principle
Nitin Tej Ahuja, CEO of the Producers Guild of India, expressed reservations about the proposal, noting he has not yet reviewed the BMC's tax plan in detail. "Conceptually, we have made many representations against local bodies charging entertainment tax," Ahuja stated. He pointed out that the foundational principle behind GST was 'One Nation One Tax', and questioned why the entertainment industry should be targeted with additional levies. The intent of GST was to consolidate multiple taxes into a single system, and this move could undermine that objective.
Impact on Post-Pandemic Recovery and Employment
B N Tiwari, president of the Federation of Western India Cine Employees (FWICE), warned that the film and television industry is only now stabilizing after years of pandemic-related losses and competition from OTT platforms. "Any re-introduction of entertainment tax at the municipal level must be handled very cautiously," Tiwari asserted. He explained that if the tax leads to higher ticket prices, it could reduce footfall in theatres, adversely affecting workers and daily wage technicians across the industry. Tiwari urged that the tax be kept nominal or structured to avoid passing costs onto consumers, as exhibitors are already grappling with maintenance, electricity, and rental expenses.
Balancing Civic Revenue with Industry Sustainability
Tiwari further emphasized the need for a balanced approach. "FWICE believes that the objective of revenue generation for the civic body should not come at the cost of revival of cinema exhibition," he said. He suggested that unless the government caps or absorbs part of the levy, ticket prices are likely to rise, potentially driving audiences toward digital platforms and harming the entire ecosystem—including producers, distributors, theatre owners, and thousands of workers. Concessions or differential rates, especially for single-screen cinemas, may be necessary to prevent further financial strain.
This development underscores the delicate balance between municipal revenue needs and the sustainability of Mumbai's vibrant film industry, which plays a crucial role in the city's cultural and economic landscape.
