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Dying single screens take a toll on tax collection

4 districts — Washim,Hingoli,Buldhana & Amravati — report drop

Written by ZEESHAN SHAIKH | Mumbai | Published: June 28, 2013 2:40:31 am

The closure of several single-screen theatres has forced the state government to revise its 2013-14 entertainment tax collection estimate.

After raking in Rs 599.48 crore during 2012-13,it has scaled down the estimate for next fiscal to Rs 595.23 crore.

“The marginal decline in collection and projection is due to the closure of many single-screen theatres,” revenue secretary Swadheen Kshatriya said. Maharashtra has a high entertainment tax rate of 49.5 per cent,one of the reasons for the closure of single-screens. Their number has come down from 1,000 to less than 600.

To provide some cushion,the state government had announced a tax holiday for single screens,which,officials claimed,contributed to the drop in revenue.

During 2012-13,entertainment tax collection reduced in four districts. In Hingoli,the government had set a target of Rs 1.05 crore but managed to recover only Rs 97 lakh. In Amravati,the generation was Rs 4.29 crore as against an estimate of Rs 5 crore. In Washim,it was expecting Rs 1.2 crore but got Rs 81 lakh and in Buldhana the collection was Rs 1.98 crore against an estimate of Rs 2.25 crore.

Returns from Mumbai and Thane increased,but marginally. In Mumbai,the state collected Rs 88.09 crore. It was targeting Rs 88 crore. In Mumbai suburbs,it exceeded the estimate of Rs 149 crore by Rs 23 lakh.

The government is estimating negative returns from Beed,where tax collection is expected to fall by Rs 35 lakh,and Washim,where too a shortfall of Rs 31 lakh is possible. State levies entertainment tax in 15 major categories,including multiplexes,single-screens,DTH services,cable TV,horse races,video games,video parlors discotheques and IPL matches.

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