- News>
- States
10 per cent cut in entertainment tax for single-screen cinemas
Mumbai, Oct 22: The Maharashtra government today announced a 10 per cent cut in entertainment tax for single- screen cinema theatres with a rider that its benefits be passed on to the viewers.
Mumbai, Oct 22: The Maharashtra government today
announced a 10 per cent cut in entertainment tax for single-
screen cinema theatres with a rider that its benefits be
passed on to the viewers.
Announcing this after a cabinet meeting, Chief Minister
Sushil Kumar Shinde said the Mumbai Entertainment Act will be
amended to include the new changes.
"The state will lose approximately Rs 30 crore of its present income of Rs 150 crore from entertainment tax with the new tax rates," he told reporters here.
He further said that the government will allow theatre owners to raise the service tax rates from present Rs two per ticket to Rs three for non-AC and air-cooled theatres and Rs four for AC theatres. For touring theatres, the service tax will be 50 paise.
The cabinet also decided to allow non-AC theatre owners to pay one-third of the electricity bills through the service tax accruals, Shinde said.
Deputy Chief Minister Chagan Bhujbal, who was also present at the briefing, told newsmen that the government will sign an agreement with theatre owners on their demands only when it is convinced that the tax benefits are reaching the viewers.
He said the government was studying a demand of theatre owners of forming exit policy under which a theatre if closed can be put to use for different purpose.
Bureau Report
"The state will lose approximately Rs 30 crore of its present income of Rs 150 crore from entertainment tax with the new tax rates," he told reporters here.
He further said that the government will allow theatre owners to raise the service tax rates from present Rs two per ticket to Rs three for non-AC and air-cooled theatres and Rs four for AC theatres. For touring theatres, the service tax will be 50 paise.
The cabinet also decided to allow non-AC theatre owners to pay one-third of the electricity bills through the service tax accruals, Shinde said.
Deputy Chief Minister Chagan Bhujbal, who was also present at the briefing, told newsmen that the government will sign an agreement with theatre owners on their demands only when it is convinced that the tax benefits are reaching the viewers.
He said the government was studying a demand of theatre owners of forming exit policy under which a theatre if closed can be put to use for different purpose.
Bureau Report