Chandigarh: Movie tickets likely to be expensive as MC mulls entertainment taxhttps://indianexpress.com/article/cities/chandigarh/chandigarh-movie-tickets-likely-to-be-expensive-entertainment-tax-5963871/

Chandigarh: Movie tickets likely to be expensive as MC mulls entertainment tax

As per the agenda that is being prepared, 20 per cent tax is likely to be levied on tickets priced at Rs 100 and below while 30 per cent tax will be levied on tickets above Rs 100. In most multiplexes, the tickets are priced above Rs 100.

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The issue of entertainment tax on the movie tickets will be brought in the general house meeting for final approval of the house. Chandigarh Municipal Corporation (File)

MOVIE OUTINGS may burn a hole in your pocket in the days to come as the Chandigarh Municipal Corporation is all set to bring in entertainment tax on movie tickets.

The issue of entertainment tax on the movie tickets will be brought in the general house meeting for final approval of the house.

As per the agenda that is being prepared, 20 per cent tax is likely to be levied on tickets priced at Rs 100 and below while 30 per cent tax will be levied on tickets above Rs 100. In most multiplexes, the tickets are priced above Rs 100.

The House meeting this time is scheduled to take place on September 12. A senior officer told Chandigarh Newsline, “If the House approves the agenda, the draft notification can be issued by the first week of next month and accordingly the new charge will be levied.”

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Congress councillor Devinder Singh Babla, however, said that the Congress will oppose the move. “The BJP government has just been imposing taxes on people ever since they came to power. Already so many taxes and cess have been approved. We will not allow them to pass the entertainment tax,” Babla said.

The agenda had been pending for long. In August 2017, the Lok Sabha had passed a Bill that sought to transfer the Central government’s power to levy entertainment and amusement taxes in Chandigarh to its municipal corporation.

“To keep the health of the municipalities in mind, the municipalities have been given the right to levy a certain reasonable tax if they feel so. Now this is a dichotomy. But this is how the architecture has come about. I have personally written to every chief minister saying that till such time that the GST stabilises itself, we must not consider seriously imposing some of these taxes because they may increase the burden,” the then Union Finance Minister had said while replying to a brief debate on the Punjab Municipal Corporation Law (Extension to Chandigarh) Amendment Bill 2017. Under the 1994 Act, the Central government had the power to levy entertainment tax and entertainment duty for Chandigarh, it was stated in Parliament.

The Chandigarh Municipal Corporation has been bringing different agenda items to generate revenue. Already the draft notification of municipal cess on per unit charge of electricity has been issued.

The municipal cess will be 10 paisa per unit charge. It is on the pattern of the Punjab government that this decision was taken by the general house and sent to the UT Administration after approval.

The civic body aims to earn a revenue of around Rs 17 crore per annum with this municipal cess. This move will affect 2.25 lakh consumers of all categories as their bills will see an inflation of around 10 per cent with this, depending on the usage or the consumption of the units. Of the 2.25 lakh consumers, 1.75 lakh are residential users.