Almost 1,200 single screening theatres in Maharashtra, including 93 in Mumbai, will go on an indefinite strike from October 18.

Apparently, the state government has not agreed to their demands, some of which include reduction in entertainment tax from 55 per cent to 30 per cent (multiplex theatres get a 100 per cent tax exemption), increase in service tax from Rs 2 to Rs 5 and electricity bill to be prepared on the industries level instead of on the existing commercial basis.

Theatre owners also demanded the implementation of an exit policy so that they have the option of changing their profession.

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Nestor D'Souza, president of the Cinematograph Exhibitor's Association of India and general manager of Mumbai's Metro cinema, says, "The government will lose approximately Rs 1 crore a week because of our closure. Our loss will be more than that. Last May, when we called off our closure, the government had assured us our problem would be solved within 90 days. But nothing has happened. If the government gives a tax exemption to the single screening theatres like they do to multiplexes, we would be able to utilise that money for other facilities."

Maharashtra's Revenue Minister Shivajirao Patil Nilangekar counters, "The government is promoting the multiplex culture and we want more people come forward to invest in this business. That's why we have provided this facility to multiplexes. Currently, we have only four multiplexes in Mumbai and two in Pune."

The government has given a five-year tax exemption to multiplex theatres: 100 per cent exemption for three years and 75 per cent for next two years.

Nilangekar adds, "We had told the single screening theatre owners that they should wait for some time. We will appoint a committee to find a solution to their problems. But they refuse to wait."

Following the last strike by the theatre owners in May, the state government had, as a stop-gap arrangement, reduced the entertainment tax from 60 per cent to 55 per cent for single screening theatres in Mumbai and reduced it even further for other parts of the state.

Nilangekar says, "The government will lose Rs 22 crore annually because of this."

D'Souza counters, "We are trying to convince distributors not to release films until our strike is over and cooperate with us. But we are not getting any proper assurance from them either."

No films will release this week. Next week, however, has quite a few films scheduled for release including Pinjar, Ek Hindustani, Raja Bhaiya, Sssshhh..., Inteha, Aanch, Kagaar, Love In Nepal and Patth. The Diwali week is always considered ideal for film releases as the festive season always generate good money. The strike may affect the release of some of these films.

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