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Midnight Shows: Loss To Governments

Midnight Shows: Loss To Governments

Permission was granted for 'Guntur Kaaram' to screen 1 AM shows in almost 23 theaters across entire Telangana. Similar permission was earlier given for 'Salaar-Part1-Ceasefire' as well.

The noteworthy aspect is that tickets for these shows are being sold at exorbitant prices crossing more than Rs 2000, and transactions are predominantly occurring in cash. 

This has created an open black market where the government receives zero tax revenue from these transactions. Furthermore, the government has to provide special protection and police support for these shows due to the odd timing, incurring additional expenses.

It is surprising and illogical to observe that there are consumers willing to buy tickets at high prices, yet the government has not officially streamlined the process to generate taxable income.

In Bengaluru, there is a theater named "Directors' Cut" that sells movie tickets for more than Rs 2000 round the year, attracting audiences and contributing significantly to government tax revenue. There can be something of such model in Telangana as well when there are consumers to spend a premium for something they like. 

The approach followed by the Telangana government raises questions regarding public income and expenditure. On the contrary, the situation in Andhra Pradesh is different, with lower ticket prices leading to unofficial black market activities.

While the black marketing of tickets for the 1 AM shows is happening openly in Telangana due to the government's liberal approach; in Andhra Pradesh it is occurring unofficially. In both cases, the governments are losing out on potential tax revenue. It's a concerning situation!

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Tags: Telangana Salaar Guntur Kaaram Midnight shows