NEW DELHI: In a major relief to the entertainment industry in the Capital and with the aim of promoting culture, heritage, sports and other related activities, the Delhi Cabinet on Monday gave its approval to the new entertainment tax policy that doles out concessions by bringing down the entertainment tax rates drastically.

Chief Minister Sheila Dikshit said the new entertainment tax policy envisages reduction in the rate of tax on paid programmes from 25 per cent to 15 per cent on tickets and from 25 per cent to 15 per cent on sponsorships. It has also been decided to reduce the rate of betting tax from 20 per cent to 15 per cent.

Ms. Dikshit said the Cabinet had also decided to give 10-day period specific tax exemption to all musical and dance events during the festivals of Baisakhi, Sufi, Indradhanush, Dussehra and Ram Lila. Besides theme and venue specific tax exemptions would also be extended to Jahan-e-Khusro festival and all events organised by Delhi Tourism, including entertainment programmes at Dilli Haat.

It has also been decided to exempt entertainment tax on programmes to be organised at all community centres, panchayat ghars and traditional fairs and wrestling championships.

It was also decided to exempt events to be organised for raising funds for the preservation of heritage buildings listed by INTACH (Indian National Trust for Art and Cultural Heritage) in Delhi.

The new policy also envisages exemption from payment of entertainment tax to national sporting events organised by national sports federations and sports and games organised by Government to encourage sports activities in the run-up to the Commonwealth Games 2010.

The exhibitions organised by government and government sponsored non-profit organisations would be exempted from payment of tax, provided that the admission fee charged is not more than Rs.500 per person.

Similarly, one function per school or college per year will be granted exemption for duration not exceeding four days and where admission fee of not more than Rs.500 per person is charged.

To encourage investments in infrastructure in theatres and auditoria with the seating capacity of not less than 500, entertainment tax exemption would be granted for a period of four years from the date of commissioning of new theatre or opera house or auditoria.

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