The Hindu : Karnataka News : Entertainment industry in Goa gets a fillip

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Karnataka

Karnataka

Entertainment industry in Goa gets a fillip

Special Correspondent

PANAJI: In its effort to give the entertainment sector a fillip, the Goa Government has reduced the maximum rate of entertainment tax applicable to cinemas from 40 per cent to 30 per cent.

In the budget for 2008-09 presented to the State Assembly on Wednesday, Goa Finance Minister Dayanand Narvekar also raised the exemption limit for entertainment tax on cinema tickets from Rs. 10 to Rs. 50. “This should encourage small theatre owners to upgrade their cinema halls,” said the Minister.

The Government also reduced the minimum rate of entertainment tax applicable to cinema tickets from the existing 30 per cent to 20 per cent. Entertainment tax on other sectors such as water sports, dance and music events has also been reduced.

Tickets

For “small water sports,” the Government has reduced the entrainment tax from 15 per cent to 10 per cent, while in case of events such as dance, music and cultural performances, the minimum tax rate of 10 per cent has been extended to tickets ranging between Rs. 300 and Rs. 500. This measure is expected to encourage tourism-related entertainment events that take place in the coastal State.

The Government has, however, increased entertainment tax on casino games from 5 per cent to 10 per cent.

The State had permitted casinos in five-star resorts and also off-shore ones by amending its anti-gambling legislation in the past. The entertainment industry has been growing fast here as the State Government has promoted it as a source of revenue, after the State was declared a permanent venue for the International Film Festival of India two years ago.

Simultaneously, the Government had, through an amendment to its Entertainment Tax Act, expanded the scope of the levy to bring under its purview casinos, direct-to-home services, horse races, motor car rides, water sports and boat/river cruises among others.

The State collects over Rs. 10 crore annually from the levy.

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