New Delhi, Sep 2 (IANS) Bollywood may be the world's largest film producer but the movie multiplex industry in India is facing a slow death due to outdated laws and the high entertainment tax, says a leading industry body.
In order to revive the multiplex industry, which contributes 70 percent of all film revenues, the Federation of Indian Chambers of Commerce and Industry (FICCI) has suggested measures to the government.
'Despite being a country that is the highest film producer in the world and with the highest number of film admissions in the world, we also have the dubious distinction of being the highest 'entertainment taxed' country in the world,' it said.
In order to make the industry globally competitive, FICCI has called for capping the entertainment tax at 16 percent across India.
The body has called for standardisation and modernisation of cinema regulations under a uniform code that would be applicable across the country coupled with the removal of all pricing restrictions.
It has also said that the industry, due to archaic laws, has been registering losses and losing its competitive edge. It has recommended making the laws simpler and standard for the entire sector.
Single-window clearance of licensing, computerised ticketing and creation of a new cinema code also forms a part of measures recommended to the government.
'India has only about 12 screens per million in comparison to the US which has about 117 screens per million. There is thus an estimated shortfall of an estimated 40,000 screens in the country,' FICCI said in a statement.