The association of single-screen theatre owners in Maharashtra has called off its indefinite strike after Deputy Chief Minister Chhagan Bhujbal promised at a meeting to consider its demands.
Nestor D'Souza, president of the Cinematograph Exhibitors' Association of India and general manager of Metro cinema, a landmark in south Mumbai, said, "The government is ready to reduce entertainment tax. The government is also considering our request on an exit policy and will take a decision on it within a month."
The CEAI had decided to shut cinema halls indefinitely from October 17 till the government took a decision on their demands.
The strike would have affected new movies like Pinjar, Ek Hindustani, Raja Bhaiya, Sssshhh..., Inteha, Aanch, Kagaar, Love In Nepal and Patth, which are expected to release next Friday.
The theatre owners want entertainment tax reduced from 55 to 30 per cent (multiplexes get cent per cent tax exemption for three years) and an increase in the service tax levied on tickets from Rs 2 to Rs 5. They are also demanding that industrial power tariffs be applied to cinema halls rather than the much higher commercial rates.
The fourth major demand is an exit policy that will allow theatres to be converted to other uses if the cinema business is not doing well.
This was the second time this year that the theatre owners had called a strike. In May too they had gone on strike, but had called it off after the government had similarly promised to take care of their problems.
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