New Delhi, July 03: Keeping in view the slowdown in
the cinema industry, the Municipal Corporation of Delhi will
review the policy of increasing tax on city theatres.
Mayor Kanwar Sain today said a proposal sent to the Delhi
government about five years back envisaged increasing the
maximum leviable tax by MCD on cinema theatres from Rs 7 to Rs
10 per show to Rs 1000 per show.
However, the upper limit had been envisaged for any
future increase, not necessarily implying that it would be
increased to Rs 1000 per show, he noted.
The Mayor said the proposal needs to be reviewed in the
present circumstances because the cinema industry is badly hit
by cable TV, satellite TV and piracy.
"The occupancy in theatres has dropped considerably and
they are merely surviving on advertisement revenues and
canteen sales," he said noting that MCD and Delhi government
are already taking entertainment tax, advertisement tax and
property tax from the theatres.
Bureau Report
First Published: Friday, July 03, 2009, 23:39