New Delhi, Jun 24 (UNI) Film buffs in Delhi can now enjoy watching their favourite Bollywood and Hollywood movies in cinema halls at a lesser price with the Delhi Government today deciding to reduce entertainment tax on cinema from 30 to 20 per cent.
A decision in this regard was taken in a meeting presided over by Delhi Chief Minister Sheila Dikshit.
Addressing reporters after the meeting, Dr Walia said this decision had been taken after examination of a representations received from the National Association of Motion Picture Exhibitors and the Multiplex Association of India.
Earlier, the entertainment tax on cinema in Delhi was 60 per cent upto March 31, 2003, but it was reduced to 30 per cent only w.e.f.
April 1, 2003.
The rate of entertainment tax is as high as 60 per cent in Rajasthan, Uttar Pradesh, Goa, Mumbai and Karnataka. Dr Walia said Delhi is the first state where the entertainment tax was reduced by 40 per cent in a span of five years.
Dr Walia expressed confidence that reduction in the entertainment tax would benefit the general public. After the reduction in rate of entertainment tax on cinemas in 2003, instead of passing on the benefit of reduced tax, the cinema halls started increasing the rates of tickets.
At present, there are 56 cinema halls in Delhi out of which 17 are multiplexes and total number of screens is 99. Entertainment tax from cinema sector is 17 per cent of the total entertainment tax collections per year. 17 multiplexes account for 80 per cent of the total entertainment tax collected from cinema halls. The collection of entertainment tax from cinemas, including theaters and multiplexes has gone up from 23.65 crore in 2005-06 to Rs 29.89 crore in 2006-07 and Rs 38.07 crore in 2007-08.
UNI AR AE AS1813