New Delhi, July 27: The Multiplex Association of India, along with industry chamber Ficci will draft model cinema regulation seeking a gradual cut in the entertainment tax to an average 20 per cent over the next five years. The initiative came after the association which is a Ficci promoted body met the I&B Minister Ravi Shankar Prasad today and made a presentation on rationalisation of entertainment tax and simplification of Cinema regulations for the sector.
"The Minister has suggested that the association and Ficci should form draft model cinema regulations encompassing all the required changes in the current rules and laws besides making public opinion towards these changes," Amit Mitra, secretary general, Ficci said.
The draft regulations will be prepared over the next 45 days and will be presented to the Minister who after reviewing it, is expected take it up with state governments on the issues as they fall under the state list, he said.
The association which claims of having the consent of individual cinema hall owners, says against the average tax rate of 10-30 per cent South East Asian countries, in India entertainment tax on average stands at 60 per cent. Bureau Report