Reduction in food prices in multiplexes..!?
Reduction in food prices in multiplexes..!?
Food prices will come down in multiplexes. The central government has reduced the GST rate on food and beverages from 18 percent to 5 percent. Calling people to film is a big adventure. In recent times, there is a discussion that the audience is not turning towards the theaters due to many reasons including the air of OTTs, and increased rates in multiplexes. Many are expressing their displeasure over the increased rates in multiplexes. The government has come forward to curb this and has given good news to the audience by reducing GST. This will reduce the price of snacks and drinks in cinema halls. Due to this decision of the central government, the business in the multiplexes will increase and the burden on the audience will be reduced.
The central government has taken an important decision in the fiftieth meeting of the GST (Goods and services Tax) Council. Substantial reduction in taxes on many items. The decision was announced at a meeting held on July 11 under the chairmanship of Union Finance minister Nirmala Sitharaman.
There has been a long-standing complaint that food and beverages are expensive in cinemas and multiplexes. 18% GST was added to it, so it was even more expensive. This was a huge burden for the cinema audience. Now that the GST has been reduced to 5 percent, the price of items like popcorn, and cooling dings will come down. This will be beneficial to all categories of audiences. Multiplexes have welcomed the reduction in tax rates.
About 35 percent of multiplexes' revenue comes from the sale of snacks and beverages. But most of the audience was reluctant due to the high price. Now that there is a tax cut, there are indications of increased business in multiplexes. Many big-budget movies are releasing in the second half of 2023. Now the reduction of GST will further benefit all these movies.
The business of multiplexes collapsed due to the Corona lockdown. So the ticket prices of some movies were reduced to attract people. However, the argument was heard that people are not coming to see movies like before. Now that the GST on snacks and beverages has been reduced, more people are expected to visit multiplexes. At present, the low price will satisfy the audience and we have to wait and see if people will turn up in large numbers.