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Scheme to modernise cinema houses

By Our Staff Correspondent

BHOPAL SEPT. 27. The Madhya Pradesh Cabinet has approved an incentive scheme for improvement and modernisation of cinema houses in small cities of the State and decided to grant exemption in entertainment tax to these cinema houses for a period of three years.

This was decided at a Cabinet meeting chaired by the State Chief Minister, Digvijay Singh, here today. Following the latest decision, the cinema houses in small cities would now get entertainment tax exemption if they opt for renovation and go for new equipment like projectors, speakers, amplifiers, air- conditioning and air-cooling systems.

For availing the tax exemption, the cinema house owners would be required to chalk out an improvement scheme and submit it to a committee headed by the district collectors. The exemption would be given for works costing over Rs. five lakh.

At present there are 332 cinema houses in Madhya Pradesh. Of these, 104 are in municipal corporation areas and 228 in small towns. The Government, according to an official spokesman, felt the need to provide a major incentive to the small cinema houses since the cinema houses in small towns required major upgradation to attract viewers.

The official spokesman pointed out that the State Government has reduced the entertainment tax even in the municipal corporation areas from May this year.

This has reduced the burden of entertainment tax on cinema house owners and the amount saved by them was now being utilised for upgrading the cinema houses and providing additional facilities.

Moreover, an incentive scheme for new cinema houses is also being implemented in the State. Under the new scheme, special grant is being provided for establishment of cinema halls in areas that do not have any cinema hall within a radius of ten kilometres.

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