The BMC entertainment tax hike proposed for Mumbai cinemas and performing arts venues has not taken effect, and the old rates from 2018 remain in force. The Brihanmumbai Municipal Corporation told the All Indian Cine Workers Association (AICWA) in a letter dated 5 November that the revised rates cannot apply until the Maharashtra government clears the proposal. The Urban Development Department must approve the new schedule before it can apply.
The BMC entertainment tax proposal, put forward by the BMC in late September, would raise the tax sharply. Air-conditioned cinema halls and multiplexes would pay Rs 400 per ticket instead of Rs 60, about 570 per cent more. Non-air-conditioned cinema halls would pay Rs 200 instead of Rs 45, and the levy on performing arts shows would double from Rs 50 to Rs 100 per ticket. The BMC has also proposed a 100 per cent exemption from theatre tax for Marathi and Gujarati films, plays and concerts. Until the state approves the plan and issues a gazette notification, none apply.
AICWA president Suresh Gupta had written to Maharashtra Chief Minister Devendra Fadnavis asking for the hike to be withdrawn, and he met Deputy Municipal Commissioner Prashant Gaikwad. Gupta said he received the BMC letter on Thursday and was happy to get a response within 15 days. He said the BMC wants to increase the tax, but since the state has not approved it yet, the civic body still charges the old 2018-19 rates. The association welcomed the response, though the issue remains open.
BMC entertainment tax proposal and the rates in dispute
The numbers explain why the BMC entertainment tax proposal drew strong objections from the film industry. A multiplex ticket that now carries Rs 60 in BMC entertainment tax would carry Rs 400 under the new schedule, close to a sevenfold rise. Single-screen air-conditioned cinemas would face Rs 200 per show, while drama, jalsa and other performing arts events would attract Rs 100 per show. The BMC has said the tax, known as Rangbhumikar, funds city development, with an annual revenue target of about Rs 400 to 500 crore from it.
The proposal was reported between 23 and 25 September, and the BMC law committee has since referred it back to the administration to rework the rates, with concerns raised that the increases are too high. Gupta met Maharashtra ministers on 13 October, including Cultural Affairs Minister Ashish Shelar, Labour Minister Akash Pandurang Fundkar and Minister of State for Labour Ashish Jaiswal, and urged them to stop it. He warned that a steep rise would land on moviegoers through higher ticket prices and would cut footfalls already low after the pandemic and the growth of streaming.
The BMC entertainment tax letter, a copy of which was reported by Mid Day, confirms that the revised rates have not received approval from the state government. It also states that the Rangbhumikar tax is currently being collected at the rates introduced in 2018. The civic body said in the letter that the state government is in charge of the issue and that it has asked the government whether it wants to implement the hike. That leaves exhibitors and organisers in a holding pattern, with no date set for a decision.
BMC entertainment tax and what happens next
The next step for the BMC entertainment tax belongs to the Urban Development Department, which must clear the revised rates before they come into force. The new schedule would take effect only on the date set in a gazette notification, with the BMC aiming for the 2027-28 financial year. Until that process is complete, the existing municipal rates remain in place, and no exhibitor has to pay the higher amounts. The law committee referral shows that even within the civic body there are doubts about the scale of the rise.
For cinema owners, the BMC entertainment tax uncertainty cuts both ways. A rise to Rs 400 per ticket would add a large fixed cost to every show, and the industry says it would push ticket prices up and keep audiences away. The state government has not said when it will decide, and AICWA says it will keep pressing for the proposal to be scrapped, not softened. Gupta has said his demand is for the hike to be cancelled altogether, not merely reduced.
The position as of 7 November is that nothing has changed for ticket buyers. The BMC entertainment tax on a multiplex ticket is still Rs 60, the tax on a non-air-conditioned hall is still Rs 45, and the levy on a performing arts show is still Rs 50. The proposed rates remain only a proposal until the state approves them. The decision now rests with the state, and the industry is waiting to see whether it backs the plan or drops it.