Delhi Govt cuts entertainment tax on cinema

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New Delhi, Jun 30 (UNI) Here's some good news for cinema lovers in the capital as the Delhi Cabinet today gave its approval for a reduction in the Entertainment Tax on Cinema from 30 to 20 per cent.

The decision was taken at a Cabinet meeting chaired by Chief Minister Shiela Dikshit.

The decision had been taken after examination of a representations received from the National Association of Motion Picture Exhibitors and the Multiplex Association of India.

Briefing mediapersons, Ms Dikshit said the Cabinet has decided to slash Entertainment Tax on Cinemas including theatres and multiplexes from existing 30 to 20 per cent. She expressed confidence that reduction in entertainment tax would benefit the general public.

She said a notification was being issued under the Delhi Entertainment and Betting Tax Act, 1996.

Earlier, the Entertainment Tax on cinema had been slashed by half in April 2003 from 60 to 30 per cent.

There were at present 56 cinema halls in Delhi out of which 17 were multiplexes. The total number of screens was 99. Tax revenue from cinema sector was 17 per cent of the total entertainment tax collections per year. The multiplexes account for 80 per cent of the total entertainment tax collected from cinemas.

The collection of entertainment tax from cinemas including theatres 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.

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