BMC's 570% entertainment tax hike awaits Maharashtra Government approval

The proposed entertainment tax revision for Mumbai's cinema halls and performing arts venues is yet to receive the Maharashtra government's approval. The Brihanmumbai Municipal Corporation (BMC) has reportedly informed the All Indian Cine Workers Association (AICWA) that the revised rates cannot be implemented until the state government clears the proposal.

The development comes weeks after the civic body suggested increases of up to 570 per cent, triggering objections from representatives of the film industry.The AICWA had approached the state government and BMC, urging officials to reconsider the proposed changes. Its president, Suresh Gupta, has now reportedly received a written response from the civic body. The communication confirms that the existing tax rates continue to apply while the proposal awaits a decision.

BMC informs AICWA that entertainment tax proposal awaits approval

In late September, the BMC proposed a substantial revision of entertainment tax rates applicable to cinemas and performing arts venues. The proposal immediately faced opposition from the AICWA, which raised concerns about the potential impact on the film exhibition sector.Suresh Gupta wrote to Maharashtra Chief Minister Devendra Fadnavis, requesting that the proposed hike be withdrawn. He also met Deputy Municipal Commissioner Prashant Gaikwad to raise the association's objections.

The BMC has since responded through a letter dated November 5, stating that the revised rates have not received approval from the state government.

Suresh Gupta reacts to the BMC's response

Speaking to Mid-day, Gupta said the civic body had directed the matter to the state government. He also questioned why the BMC had proposed the increase if the final decision rested with the government.Gupta shared, “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.”

Urban Development Department must clear revised rates

The proposed changes require approval from the Maharashtra government's Urban Development Department before they can come into force. A copy of the BMC's letter, reported by Mid Day, confirms that the revised rates are yet to be cleared.The communication also states that the Rangbhumikar tax is currently being collected at the rates introduced in 2018. Explaining the purpose of the revenue, the BMC letter reads, “The contribution coming to the Municipal Corporation’s treasury from your Rangbhumikar is used for the overall development of Mumbai city.”

How much could the entertainment tax increase?

The BMC's proposal includes different revisions for cinema halls and performing arts events.

Air-conditioned theatres and multiplexes could face the sharpest increase, with the tax per ticket rising from Rs 60 to Rs 400. This represents a proposed hike of approximately 570 per cent.For non-air-conditioned cinema halls, the tax could increase from Rs 45 to Rs 200 per ticket, marking a 400 per cent rise. The proposed rate for performing arts shows would also double, moving from Rs 50 to Rs 100 per ticket.Gupta welcomed the BMC's response, particularly because it arrived within 15 days of the association's representation.

He also confirmed that the old rates remain applicable for now.Gupta added, “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.”

Shah Rukh Khan's 'King' among upcoming major releases

The proposed tax revision comes at a time when the Hindi film industry is preparing for several major theatrical releases in late 2026 and early 2027. One of the prominent titles on the upcoming slate is Shah Rukh Khan's 'King', which is scheduled to release in theatres on December 24, 2026.