The Tamil Nadu government and Wonderla Holidays are negotiating to resolve a disagreement over a local tax that is over and above the goods and services tax (GST) regime, which has set back the entry of Bengaluru-based amusement parks operator into Tamil Nadu, said the company.
The state government had wanted to have another tax layer, which the company has been contesting since it would take the total tax component up to 28%, including a GST rate of 18%. The Wonderla project in Tamil Nadu was an investment announced during the Global Investors Meet of 2015.
Officials with Wonderla also said talks have begun with alternative destinations even as they remain hopeful that Tamil Nadu will expedite negotiations to resolve the tax standoff. “The additional tax component is present nowhere else we operate in. It could render the facility with higher ticket prices,” Arun Chittilappally, director technology of Wonderla Holidays and Resorts, told ET.