Watching a film in Mumbai could cost more per ticket. The possible increase follows a proposed rise in the city’s entertainment tax on shows. Exhibitors and producers shared their estimates with The Economic Times (ET).
The Brihanmumbai Municipal Corporation () proposes raising the levy from ₹60 to ₹400. That means an additional ₹340 for each film show.
The proposed amount is nearly seven times the existing charge. However, the increase remains a proposal rather than an implemented change to the ticket price.
This tax applies per show, not per ticket. A theatre would pay the fixed amount regardless of how many people attend. Exhibitors expect to pass the additional burden on to customers through higher ticket prices.
The proposed levy could also reduce earnings shared by theatres and distributors. These earnings are calculated after taxes and other deductions from ticket collections. A higher tax leaves less money available for both sides.
ET cited data from Karmic Films to explain the possible impact across seven shows. It assumes total ticket collections of ₹1 lakh. The combined show tax rises from ₹420 to ₹2,800. The money available for sharing decreases from about ₹83,326 to ₹80,946.
Under an equal split, each side’s share drops by ₹1,190. The example shows how collections can remain unchanged while earnings after deductions decline. Karmic Films co-founder Suniel Wadhwa highlighted this concern in his comments to ET.
Poor attendance could make the burden harder to absorb. The same fixed tax applies even when only a few tickets are sold.
Consequently, the tax burden per ticket increases during less crowded shows. Film trade analyst Girish Wankhede linked the proposal’s impact directly to theatre occupancy.
Mumbai is an important market for the film business. According to the ET report, it contributes 20-25% of India’s gross box-office collections. Its average ticket prices are also significantly-above the national average.
Industry representatives worry that other regions could introduce similar levies. Cinepolis India MD Devang Sampat criticised the proposal’s timing and policy approach. According to him, India’s exhibition business has not fully recovered to its pre-COVID levels.
For viewers, the concern is a potentially costlier cinema outing. For theatres and distributors, it is another squeeze on earnings amid weak attendance.
The proposed tax would rise from ₹60 to ₹400 per show. Theatre owners would therefore pay ₹340 extra for every screening. This amount stays fixed, whether 20 people attend or 200.
Theatres cannot know the final attendance when setting ticket prices. They may, therefore, choose a standard increase based on expected attendance. However, the same increase would produce different collections at different shows.
An exhibitor quoted by ET estimated an increase of ₹5-10 per ticket. The exhibitor, while requesting anonymity, explained how the extra tax could be passed on to consumers. This is an industry estimate, rather than a confirmed increase across all Mumbai cinemas.
Suppose a adds ₹5 to every ticket. With 100 paying viewers, it collects ₹500 in additional revenue. That exceeds the additional tax by ₹160. With 68 viewers, it collects exactly ₹340, covering the increase.
But a show with 50 viewers collects only ₹250 extra. The theatre would still fall short by ₹90. With just 20 viewers, it collects ₹100, leaving a ₹240 shortfall.
Now, suppose the theatre increases each ticket price by ₹10. It would need 34 paying viewers to collect the additional ₹340. With only 20 viewers, it collects ₹200 and remains ₹140 short.
These examples exclude GST and other deductions to keep the calculation simple. The BMC has increased the tax by nearly sevenfold.
But that doesn’t mean your ticket price will also cost seven times more. It will probably be more expensive, possibly by around ₹10.
