Tamil Nadu government has just dropped a huge rock on the head of something, which was already beaten to death.Spyder, which was directed by AR Murugadoss has had a huge theatrical business involved worldwide.
This Superstar Mahesh Babu starrer has done a massive 150cr+ pre release business worldwide, where theatrical rights alone fetched over 125cr.Tamil Nadu rights were sold at 18cr for Lyca Productions
Spyder bombed at the box office and ended up as a huge disaster.It’s the same everywhere including Tamil Nadu.While the film is already a loss venture for Lyca Productions, the government’s new decision is going to hurt the distributors even more.
Along with GST, Tamil Nadu government introduced a new local tax of 10% on movie tickets.So, the total tax on movies would be ranging in between 28% to 38%.It applies to all new releases from September 27th.Since Spyder got released on the same date, the makers need to pay 10% extra tax in the form of local body tax
Spyder will lose the extra 10% on every ticket.
For suppose, Spyder 2 weeks share in Tamil Nadu was around 10cr.Now, the share will be reduced to 9cr after deducting the 10% local body tax.So much burden on a disaster movie.
