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01-16-2013, 12:02 PM #1
- Join Date
- Sep 2011
Theatre, multiplex owners to pay more duty to govt
Theatre and multiplex owners will have to pay more duty to the government for hiking blockbuster ticket prices
With more and more films touching that Rs 100-crore mark, theatres and multiplexes owners will now have to share their profits with the State. TOI has learnt that the state government is coming up with a policy to charge more entertainment duty for tickets that are priced higher during weekends and holidays to encash on the blockbuster releases. The proposal will come up before the cabinet today.
And going by the reports, the exhibitors may want to blame Salman's dream run at the box-office for this change in policy. The cabinet note prepared by the revenue department quotes newspaper reports and states that Ek Tha Tiger did a business of Rs 35 crore on the first day and Rs 187 crore in two weeks. The note says that this is not possible without hiking ticket prices. Hence the new policy: 'Charge more, pay more entertainment duty' which will help the state to earn more.
As per the revenue departments statistics, the state earned Rs 87.38 crore from multiplexes and 108.16 crore from single screen theatres last financial year. The entertainment duty and taxes are levied as per the Maharashtra Entertainment Duty Act and works out to 45 per cent in Mumbai and 40 per cent in other areas.
The new tax slab is somewhat likes this: If a multiplex or theatre owner charges up to Rs 250 per ticket, he will not have to pay any additional surcharge. If a ticket is priced between Rs 251 to Rs 350, the theatre/multiplex owner will be charged 10 per cent more; if a ticket is priced between Rs 351 to Rs 500, the theatre/ multiplex owner will have to pay 15 per cent more. And if the ticket is priced more than Rs 501, the charge would be 20 per cent more.
There is no evading this new duty. TOI has learnt that theatre and multiplex owners will have to go for computerised booking system so that the number of tickets sold is on record. In many single screen theatres which still follow the manual ticketing system, it is easy to duplicate and evade duty. You can run, but cannot hide!
01-16-2013, 02:32 PM #2