Mumbai’s theatres have dodged a major ticket-tax jolt for now. Even after a proposal seeking a dramatic entertainment tax increase sent alarm through cinema halls, multiplexes, and performing arts venues, the old 2018 rates remain in force because the Maharashtra government has not yet approved the revision.
Bmc Says State Approval Is Still Pending
The latest development came through a November 5 letter sent by the Brihanmumbai Municipal Corporation to AICWA, clarifying that the revised rates have not yet received the Maharashtra government’s approval. Since the Urban Development Department must clear the proposal before it can take effect, the matter now rests with the state government.
Gupta said, “On Thursday, I received a letter from the BMC in which they have washed their hands of the matter. They said that the state government is in charge of this issue, and they have asked the government whether they want to implement the hike or not. But interestingly, it was the BMC that had submitted the proposal.”
That clarification has brought immediate relief to cinema halls, multiplexes, and live performance venues in Mumbai, especially after strong opposition from industry workers who argued that such a sharp increase would place further pressure on exhibition and event businesses.
What The Proposed Tax Hike Looks Like
The scale of the revision explains why the proposal sparked such a strong reaction. Air-conditioned movie halls and multiplexes face the sharpest increase, with tax proposed to jump from Rs 60 to Rs 400 per ticket, a 570 per cent surge. Non-AC cinema halls face a proposed rise from Rs 45 to Rs 200 per ticket. For performing arts shows, the levy is proposed to go from Rs 50 to Rs 100 per ticket.
For now, the existing structure stays in place, with the Rangbhumikar tax continuing to be collected at the rates enforced in 2018. That means exhibitors and organisers are still operating under the older framework instead of the sharply revised slabs outlined in the proposal.
Aicwa Welcomes The Response, But The Issue Remains Open
Gupta, who had earlier written to Maharashtra Chief Minister Devendra Fadnavis and met Deputy Municipal Commissioner Prashant Gaikwad over the issue, said the civic body’s response came quickly even if it did not settle the wider dispute.
“I am happy we got a response within 15 days. The BMC said they want to increase the tax, but since the state government hasn’t approved it yet, they are still charging the old 2018-19 rates,” he said.
In its official written communication, the BMC also stated, “The contribution coming to the Municipal Corporation’s treasury from your Rangbhumikar is used for the overall development of Mumbai city.”
The current position is clear. The proposed hike has not been implemented, the older 2018 tax rates continue to apply, and the next decision rests with the Maharashtra government because final approval is still pending.
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