The Telegraph
Since 1st March, 1999
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Film tax slash

Mumbai, Jan. 15 (PTI): The Maharashtra government today announced a massive cut in entertainment tax on cinema theatres to encourage movie buffs to patronise cinema in the state.

Taking the decision at a Cabinet meeting here, chief minister Vilasrao Deshmukh said the minimum tax payable would be 15 per cent and the highest tax payable would be 40 per cent as against the earlier 48 per cent minimum and 60 per cent maximum respectively.

Cinema theatres, falling within Brihan Mumbai Corporation limits, would now have to pay tax of 55 per cent, while those falling in other municipal corporation areas would have to pay 50 per cent tax, Deshmukh said in an official release here.

Theatres falling under a, b and c grade municipal corporations would have to pay 44, 38 and 15 per cent entertainment tax respectively, it added.

The service tax, however, had been doubled from re one per ticket to rs two per cinema ticket.

The multiplexes in the state have already been exempted from entertainment tax for the first five years.

The decision would benefit 1,341 cinema theatres (excluding multiplexes).

The state government earned a revenue of nearly rs 137 crore through entertainment tax. Pti jd asm mb 01152109 k

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