Mayor calls for review on proposed theatre tax hike

New Delhi, July 3 (IANS) Delhi Mayor Kanwar Sain Friday said the Municipal Corporation of Delhi (MCD) would review a proposal to increase tax on capital's cinema halls.

There are around 50 single screen cinema theatres in the national capital territory under the MCD's jurisdiction. At present the theatre show tax levied by the MCD amounts to Rs.7 per person per show.

However, five years ago, the MCD had sent a proposal to the Delhi government to increase this amount to Rs.10 per person per show with a maximum of Rs.1,000 per show.

'The Municipal Corporation of Delhi will review the policy of increasing theatre show tax. The proposal sent to the Delhi government about five years back seeks amendment of the fourth schedule of Delhi Municipal Corporation Act, 1957,' Sain said.

'The matter needs to be reviewed in the present circumstances because the cinema industry is badly hit by cable TV, satellite TV and piracy. The occupancy in theatres has dropped considerably and they are merely surviving on advertisement revenues and canteen sales.'

He added that theatres are already paying entertainment, advertisement and property taxes to the MCD and the Delhi government.