The Hindu : New Delhi News : Film viewing gets cheaper in Delhi

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Wednesday, Jun 25, 2008
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New Delhi

Film viewing gets cheaper in Delhi

Staff Reporter

Entertainment tax comes down to 20%

NEW DELHI: Delhi Finance Minister A.K. Walia on Tuesday announced that the State Government had decided to reduce the entertainment tax on cinema from 30 per cent to 20 per cent. The decision was taken at a meeting presided over by Chief Minister Sheila Dikshit. Dr. Walia said the decision to slash entertainment tax on films was taken after examination of representations received from the National Association of Motion Picture Exhibitors and the Multiplex Association of India. The entertainment tax on cinema was 60 per cent up to March 31, 2003, before it was reduced by half — 30 per cent — with effect from April 1, 2003.

Expressing confidence that the reduction in entertainment tax would benefit the public, the Finance Minister said that after reduction in the rate of entertainment tax on cinema in 2003 the cinema sector started increasing the rates of tickets instead of passing on the benefit of tax reduction to the public.

“There are at present 56 cinema halls in Delhi of which 17 are multiplexes and the total number of screens is 99. Entertainment tax from the cinema sector is 17 per cent of the total entertainment tax collections per year. Seventeen multiplexes account for 80 per cent of the total tax collected from cinemas.

The collection of entertainment tax from cinemas has gone up from Rs.23.65 crore in 2005-06 to Rs.38.07 crore in 2007-08,” he said.

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