BMC's 570% entertainment tax hike may push Mumbai cinema ticket prices higher
Synopsis
Mumbai's BMC wants to raise entertainment tax by 570%, pushing the multiplex levy from ₹60 to ₹400 per show to generate ₹400–500 crore a year. Actor Suhail Nayyar, promoting 'Udta Teer', says tickets will likely get costlier — though the proposal still needs Maharashtra government approval before it becomes reality.
Key Takeaways
The BMC has proposed a 570% hike in entertainment tax on cinema halls and performing-arts venues in Mumbai .
Multiplex tax could rise from ₹60 to ₹400 per show ; single-screen AC cinemas may be charged ₹200 per show .
The BMC targets annual entertainment tax revenue of ₹400–500 crore under the revised structure.
Actor Suhail Nayyar said tickets will likely become more expensive but noted the proposal is not yet finalised.
Exemptions for Marathi and Gujarati films , plays, and one-act plays are retained in the proposal.
The revised rates will only take effect after approval from Maharashtra 's Urban Development Department .
The Brihanmumbai Municipal Corporation (BMC)'s proposed 570% hike in entertainment tax on cinema halls and performing-arts venues in Mumbai could significantly push up movie ticket prices, with the proposal currently awaiting approval from the Maharashtra government's Urban Development Department. Actor Suhail Nayyar, currently promoting his upcoming film 'Udta Teer', weighed in on the issue during an interaction in Andheri West, Mumbai on 1 October 2026.
What Suhail Nayyar Said
Speaking during the promotional circuit for 'Udta Teer', Nayyar acknowledged the likely impact on audiences. 'I think movie tickets are going to be more expensive. Popcorn is anyway expensive, it's more expensive than the movie ticket,' he said.
He added a note of caution, however: 'I guess the tickets will be more costly. But, you never know, things change. They have just proposed it, they might not go ahead with it. Let's see what happens then we'll talk about it.' His remarks reflect a broader anxiety in the entertainment industry over whether the proposal will be ratified.
What the BMC Proposal Entails
Under the proposed tax structure, the levy on multiplexes could rise from ₹60 to ₹400 per show — a near seven-fold increase. Single-screen air-conditioned cinemas could face a charge of ₹200 per show, while drama, jalsa, and other performing-arts events could attract a tax of ₹100 per show.
The BMC has indicated an annual revenue target of approximately ₹400–500 crore from entertainment tax, positioning this hike as central to its broader fund-generation strategy. The proposal also retains exemptions for Marathi and Gujarati films, plays, and one-act plays — a nod to the civic body's regional cultural commitments.
Why It Matters for Audiences and Exhibitors
A 570% increase in the per-show tax burden on multiplexes will almost certainly be passed on to consumers in the form of higher ticket prices, exacerbating an already steep out-of-pocket experience for Mumbai moviegoers. This comes amid persistent industry concern about declining theatrical footfalls, with audiences already sensitive to the cost of a multiplex outing — popcorn pricing being a recurring flashpoint.
Notably, single-screen exhibitors — often operating on thinner margins than multiplex chains — could face disproportionate pressure if the revised rates come into force. Industry observers have flagged that any uniform per-show levy without a revenue-linked structure risks squeezing smaller venues out of business.
Current Status and What Happens Next
The proposal has not yet been approved. Until the Maharashtra government's Urban Development Department officially notifies the revised rates, the existing tax structure remains in force. The timeline for a decision has not been publicly confirmed, meaning exhibitors and event organisers are currently in a holding pattern.
Should the government greenlight the hike, it would mark one of the most significant changes to Mumbai's entertainment tax regime in recent years, with ripple effects across the city's film exhibition and live-events ecosystem.
Point of View
But it arrives when theatrical attendance is still recovering and multiplex operators are under margin pressure. Passing the full burden onto ticket prices risks a self-defeating spiral: higher prices, lower footfalls, and ultimately lower tax receipts. The exemptions for Marathi and Gujarati content are politically sensible but economically narrow. If the Maharashtra government approves this without an impact assessment on single-screen viability, it may be handing multiplexes a competitive moat while quietly shuttering the city's older, more accessible cinemas.
NationPress
1 Oct 2026
Frequently Asked Questions
What is the BMC's proposed entertainment tax hike for Mumbai cinemas?
The BMC has proposed raising the entertainment tax on cinema halls by 570%, with the multiplex levy set to increase from ₹60 to ₹400 per show. The proposal also covers single-screen AC cinemas at ₹200 per show and performing-arts events at ₹100 per show, pending Maharashtra government approval.
Has the entertainment tax hike been approved yet?
No. The proposal is currently awaiting approval from Maharashtra's Urban Development Department. Until officially notified, the existing tax structure remains in force and no changes apply to exhibitors.
Why is BMC proposing this hike?
The BMC aims to generate additional revenue, targeting around ₹400–500 crore annually from entertainment tax under the revised structure. It is part of the civic body's broader effort to raise funds for municipal operations.
Will movie ticket prices in Mumbai increase if the hike is approved?
Almost certainly. A sharp rise in per-show tax is typically passed on to consumers through higher ticket prices. Actor Suhail Nayyar also acknowledged during film promotions that tickets would likely become more expensive if the proposal goes through.
Are there any exemptions under the proposed entertainment tax structure?
Yes. The proposal retains exemptions for Marathi and Gujarati films, plays, and one-act plays, reflecting the civic body's commitment to supporting regional cultural programming in Mumbai.
