Daijiworld Media Network – Chennai

Chennai, Jun 3: The Tamil film industry on Tuesday expressed deep gratitude to Chief Minister M K Stalin for slashing the Local Body Entertainment Tax on films from eight per cent to four per cent—a move hailed as a major boost to the sector.

The South Indian Film Chamber of Commerce (SIFCC), in a statement, thanked CM Stalin, Deputy CM Udhayanidhi Stalin, and Minister for Information and Publicity M P Saminathan for accepting its long-standing demand. The Chamber said the decision will significantly benefit producers and small-budget filmmakers grappling with high tax burdens.

"This decision is a great boon to the Tamil film industry and will further strengthen the position of Tamil cinema," the SIFCC noted.

The reduction comes after sustained appeals from the industry, which has long argued that the eight per cent tax—charged over and above GST—was financially straining, especially for low and medium-budget films. With over 1,000 films released annually in Tamil Nadu, the tax relief is seen as timely and crucial for the industry's revival.

The Film Employees Federation of South India (FEFSI) also welcomed the decision, stating it would offer much-needed encouragement to struggling filmmakers.

However, not everyone viewed the move as a win for consumers. Veteran distributor and theatre owner Tirupur Subramaniam clarified that while the industry welcomed the government's gesture, the tax cut would not result in reduced ticket prices for moviegoers.