Mumbai’s film industry is staring at a fresh flashpoint after the Brihanmumbai Municipal Corporation proposed a steep hike in entertainment tax, a move that has triggered a sharp pushback from the All Indian Cine Workers Association. With big-ticket Hindi releases like King and Ramayana: Part 1 lined up for late 2026, the industry body has warned that the proposed jump could make cinema-going significantly more expensive and put further pressure on already struggling theatres.
Aicwa Opposes The Proposed Tax Hike
AICWA president Suresh Shyamlal Gupta has written to Maharashtra Chief Minister Devendra Fadnavis, urging the state government to reject the proposal. In his strongest warning yet, Gupta said, “Higher taxation can increase ticket prices, reduce audience footfall, and affect film production and employment opportunities for workers, technicians, and junior artistes. AICWA appeals to the Maharashtra Government to stop this proposed tax hike. Many theatres have already shut down in this state, and if this tax is passed, many more will.”
He also made it clear that the body is ready to escalate matters if needed. “If the government doesn’t listen, the AICWA will protest. We want to request the CM to reduce the taxes.”
The proposed revision has become a major talking point because it directly impacts the exhibition chain at a time when the theatrical business is still heavily dependent on event films and festive releases.
What The Bmc Proposal Says
The civic body has proposed raising the entertainment tax on air-conditioned cinema halls and multiplexes from Rs 60 to Rs 400 per show, which amounts to a 570 percent increase. A 400 percent increase has also been proposed for non air-conditioned cinema halls. The existing BMC civic diary for 2026 lists Rs 60 per show as the ceiling for air-conditioned cinema theatres, underlining just how dramatic the proposed jump is.
Distributor Raj Bansal voiced the industry’s concern in blunt terms. “With Ramayana: Part 1 and King coming, if the hiked tax is imposed, the Hindi film industry will be wiped out. How can the common man afford such prices? Also when the central government imposed GST, it was clear that no state would impose any taxes on entertainment. So, how can Maharashtra tax films separately?”
Trade analyst Atul Mohan added, “I feel this happened because of the false box office collections that producers have been putting out. The government feels if the industry is raking in R100 crore [with a film], let’s tax them.”
King And Ramayana Release Plans
The timing has made the issue even more sensitive. Ramayana: Part 1, directed by Nitesh Tiwari and produced by Prime Focus Studios and Monster Mind Creations, is scheduled for a global theatrical release in November 2026. The mythological epic stars Ranbir Kapoor, Yash and Sai Pallavi. King, backed by Red Chillies Entertainment and directed by Siddharth Anand, is slated to arrive in December 2026.
If the tax proposal moves ahead, these tentpole releases could become the first major Hindi films to test audience resistance to higher ticket prices in Mumbai.
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