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The Tamil Nadu government has chose to reduce the entertainment tax from 10 percent to 8 percent, Tamil Nadu Film Producers Council (TFPC) president Vishal announced after his meeting with government officials over the issue of double taxation and ticket price hike.

The filmmakers demanded the local body tax be completely abolished. The Tamil Nadu Film Producers' Council has announced it would not release any movies from October 6, which pointed at a crisis just before Diwali releases.

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Producers' body in the state had been protesting against the imposition of the said tax.

Though the State Cabinet approved a proposal on Wednesday to hike the salaries of TN government employees, the Tamil Nadu Government Employees Association (TNGEA) was not satisfied.

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"It is good that the government has chose to reduce the tax".

According to new regulations, multiplexes in Tamil Nadu can charge a maximum of Rs 150 and a minimum of Rs 50, AC single screens can charge a maximum of Rs 100 and a minimum of Rs 40, while non-AC single screens can charge a maximum of Rs 80 and a minimum of Rs 30. The TFPC said food and beverage in canteens should be sold at MRP. The total ticket price will be approximately around Rs 230. "Audience don't have to pay more at ticket counters than the rates fixed by the government". It may be noted that some of the big ticket movies including Mersal, starring Vijay, and Aramm by actress Nayanthara, are expected to be released during this Diwali.

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His assertion comes against the backdrop of cinema theatres charging exorbitant ticket prices for movies of top heroes like Rajinikanth.

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