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Entertainment tax on multiplexes to double

The Pune Municipal Corporation is all set to double the entertainment tax...

Written by Express News Service | Pune |
June 8, 2009 2:01:08 am

The Pune Municipal Corporation is all set to double the entertainment tax,which has remained the same for almost a decade,levied on multiplexes and air-conditioned theatres and has invited suggestions and objections from citizens on its plan to hike the tax from Rs 100 to Rs 200 per show. The hike will hardly make any difference to movie-goers as it will put an additional burden of 15-25 paise per ticket on the high price multiplexes charge.

The civic general body has given the go ahead to the administration proposal. The administration has sought suggestions and objections from citizens before the proposal is submitted to the state government for approval.

“There are 11 multiplexes in the city and the number is set to increase. Ticket rates have increased in the last few years but there has been no increase in tax,” Vilas Kanade,Tax Assessor and Collection Officer,said.

He said existing charges were too low and even the doubling of charges would not put a heavy burden on the multiplexes and the AC theatres.

The increase in tax to Rs 200 per show means 15 to 25 paise extra per ticket that costs Rs 100,Kanade said.

However,there is no increase for non-AC theatres that pay Rs 70 per show.

The multiplexes and AC theatres contribute Rs 70 lakh to the total tax collection of Rs 1.75 crore by all kind of theatres,he said adding that the proposed hike would increase revenue by around Rs 70 lakh. The PMC has already started receiving objections from theatre owners.

“They are opposing the move,” Kanade said. The suggestions and objections have been sought as per the mandatory clause 455 of BPMC Act 1949.

Neerav Panchamiya,vice-president,E Square Multiplex,said he was unaware of the PMC plans and would speak only after going through the civic body notification.

“The tickets are quite expensive compared to what the increase of tax is going to be. But,multiplex and theatre-owners should not consider it a reason to increase existing ticket rates,” a regular movie-watcher Santosh Jadhav said.

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