Devang Sampat, the driving force behind Cinepolis India, just dropped a warning that a proposed tax hike that would nearly sextuple the current rate could make ticket prices too steep for everyday moviegoers.
He says the industry has yet to get an official memo from the government; the news reached him through media chatter. The film sector is already juggling the challenge of coaxing audiences back to theatres, and a sudden price spike could undo months of marketing pushes.
Sampat lists three main points he’ll raise with officials: the principle of “One Nation, One Tax,” the need to keep business processes simple, and the razor‑thin margin by which ticket prices affect footfall. “A Rs 3‑4 jump in the average price and the crowds start thinning,” he told NDTV, underscoring how sensitive Indian cinema consumers are to price hikes.
He also flagged Mumbai as the heart of Bollywood, arguing that a policy tweak here could ripple across the rest of the country. With only about 10,000 screens nationwide and single‑screen houses closing in, the MD calls for investment‑friendly rules that would mirror China’s rapid screen expansion.
The industry is already drafting a response, gearing up to lobby for a more balanced tax structure that keeps theatres alive and the government’s coffers full. If the government pushes ahead, Indian cinemas could face a costly crisis that hurts operators, filmmakers, and audiences alike.