The Telegraph
Friday , June 27 , 2014
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Movies less taxing now

Ranchi, June 26: Watch more movies, but drink less, the state government seems to be telling Jharkhandis.

The cabinet today resolved to lower entertainment tax and VAT on electronic goods and motor parts, but hike excise duty on liquor, including beer.

Movie theatres, including multiplexes, in A category cities Ranchi, Jamshedpur, Bokaro and Dhanbad will now have to pay 8 per cent of total sum collected through ticket sale, payable each month, as entertainment tax.

In contrast to this variable, ticket sales-driven sum, movie hall owners till now paid a flat rate of Rs 40,000 a week.

In B category towns, entertainment tax will be 5 per cent of the sum collected through ticket sales. In rural areas, it will be 2 per cent.

“The decision has been taken to promote entertainment. Most movie theatres across the state are on the verge of closure. Theatre owners have been demanding rationalisation of entertainment tax since long,” cabinet coordination department principal general secretary J.B. Tubid said.

It was also decided that VAT on electronic goods such as computers, mobile phones, pen drives, wireless equipment, except UPS, would come down from existing 10 per cent to 5 per cent.

VAT on motor parts, except tyres, tubes and mud flaps have been slashed heavily from 14 per cent to 5 per cent.

However, liquor prices will go up. The cabinet decided to raise excise duty on all brands of Indian-made foreign liquor (IMFL) and beer. Revised tax amounts will be in tune with alcoholic content. For most IMFL, an additional Rs 500 per box will be charged.

“Henceforth, their retail prices will be influenced accordingly,” Tubid added.

There is cheer for the underprivileged sections, too. Monthly honorarium of anganvadi workers has been raised by Rs 750. BPL families will get 2kg sugar every month at subsidy of Rs 19.57 a kg from PDS outlets.

The lungi will join sari and dhoti as subsidised clothing items available at PDS outlets.

Compensations for the next-of-kin of government employees who died in mishaps during Lok Sabha elections have also been revised to Rs 20 lakh from Rs 10 lakh.

Also, Rs 6.86 crore was approved to develop infrastructure facilities at BIT-Mesra extension centre in Deoghar. The state highways authority will also get Rs 180 crore from CCL for widening a 29km-stretch linking Amrapali coal block with Balumath in Latehar. The NTPC too will give Rs 492 crore to state highways to widen 115km of roads linking Hazaribagh and Chatra.

Full-fledged judicial courts will also be set up in Ramgarh.

The state will also ink an MoU with UNDP for a disaster management initiative.