In a welcome move for cinema lovers, the Tamil Nadu government has officially slashed the Local Body Entertainment Tax (LBET) on movie tickets from 8% to 4%, effective May 7, 2025.
The decision was made public through a government order and comes after sustained appeals from several film industry figures — most notably veteran actor Kamal Haasan, who had recently urged the government to make cinema-going more affordable for the general public.
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While the reduction may seem small on paper, it is expected to have a meaningful impact on ticket prices and, potentially, on footfalls in theaters. For instance, a ticket that currently costs 120 could now drop to about 116, and a 190 ticket may come down to around 183.
Though the price difference is modest, industry experts believe it could encourage more audiences — especially families and college students — to return to theaters, which have been struggling to recover post-pandemic.
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The timing of this tax cut is also significant. Kamal Haasan’s much-anticipated film Thug Life, directed by Mani Ratnam, is slated for release on June 5, 2025.
With the reduced tax now in effect, industry insiders believe the film could benefit from increased audience turnout, possibly boosting its opening box office numbers.
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While the government’s decision has been widely praised, skepticism still lingers among moviegoers. Some fans fear that theater owners might retain the savings for themselves instead of passing on the benefits to customers.
Clear communication and transparency in pricing will be crucial to ensure that the reduced tax truly translates into lower ticket costs for the public.
Interestingly, the news has also stirred debate in neighboring states, particularly in the Telugu states. Fans there are voicing frustration over rising ticket prices — with rates now as high as 295 and 250, even for mid-budget films like MAD Square, Robinhood, and HIT 3.
Many are now urging Tollywood producers and state officials to take a cue from Tamil Nadu’s model and reconsider the trend of steep pricing, which they argue pushes average moviegoers away from theaters and hurts the industry in the long run.
