Bengaluru: The Multiplex Association of India (MAI) on Wednesday termed Karnataka government’s order on capping movie ticket price at Rs 200 as retrograde, irrational, unfair, against the interests of the film industry and the people of the state and potentially unconstitutional.
“We believe that steps like these, which place a cap on ticket prices of cinema theatres are investor unfriendly and against the interests of the film industry. Hence, we urge the state government to withdraw the said notification with immediate effect,’’ Multiplex Association of India president Deepak Asher said in a statement.
On May 2, Karnataka state Kannada Culture and Information Department Joint Secretary S.N. Jaysri issued an order capping movie tickets in theaters and multiplexes across the state to Rs 200 excluding taxes from May 3.
The maximum ticket price for non-Kannada films will be Rs.264, including Rs.60 entertainment tax and Rs.4 service tax.
The MAI said the move to cap ticket prices is investor unfriendly and will stop the growth of new multiplexes in the state.
“The Karnataka Government has been proactive and positive to the needs of the industry, and for this reason, Karnataka has been one of our favourite investment decisions,’’ MIA statement said.
However, Kannada associations, including Karnataka Film Chamber of Commerce, are not in favour of any rollback on capping the movie ticket prices in Karnataka.
“We demanded the government to cap the movie ticket prices at Rs 200 including entertainment tax and service tax but the government fixed at Rs 200 excluding taxes,’’ Karnataka Film Chamber of Commerce president Sa Ra Govindu.
The MAI said that being able to charge relatively higher prices for peak shows helps multiplexes charge lower prices for non-peak shows, helping multiplexes cater to all segments of the market.
“When multiplexes collect Rs 150 only in neighbouring states, how will it not viable for multiplexes in Karnataka if movie ticket price is capped at Rs 200 excluding taxes?’’ asks Sa Ra Govindu.
Meanwhile many multiplexes in Bengaluru have reduced ticket prices. Some of them are collecting below Rs 264 for morning and noon shows.
“I paid Rs 250 to watch Telugu film Baahubali 2 – The Conclusion at Fun Cinemas on Cunningham Road. I welcome the state government’s decision to cap movie ticket prices at Rs 264 including taxes,’’ said Abhigna Reddy, a college student.
