Delhi government slashes entertainment tax on cinema

New Delhi, June 24 (IANS) The Delhi government Tuesday slashed entertainment tax on cinema by 10 percent.

Finance and Planning Minister A.K. Walia Tuesday announced that the entertainment tax had been slashed from 30 to 20 percent in the capital.

The decision was taken after examining representations from the National Association of Motion Picture Exhibitors and the Multiplex Association of India at a meeting presided by Chief Minister Sheila Dikshit.

With this move, Delhi becomes the first to reduce entertainment tax by 40 percent in five years, Walia was quoted as saying in a statement released by the Directorate Of Information & Publicity.

Walia expressed confidence that reduction in entertainment tax would benefit the general public.

In 2003, when entertainment tax was reduced by half (from 60 to 30 percent), the cinema halls started increasing the rates of tickets instead of passing on the benefit of tax reduction to the public.

According to the latest government data, the collection of entertainment tax from cinemas including theatres and multiplexes has risen from Rs.236.5 million in 2005-06, to Rs.298.9 million in 2006-07 and Rs.380.7 million in 2007-08.