The Hindu : New Delhi News : A new high for cinemagoers

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Tuesday, Jul 01, 2008
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A new high for cinemagoers

Staff Reporter

Sheila Government reduces entertainment tax to 20 per cent

NEW DELHI: The Delhi Cabinet on Monday approved a reduction in entertainment tax on theatres and multiplexes from the existing 30 per cent to 20 per cent.

Announcing the decision, Chief Minister Sheila Dikshit said the move would help a large number of cinemagoers. A notification is being issued under the Delhi Entertainment and Betting Tax Act, 1996, to formalise the reduction in tax.

‘Benefit public’

Ms. Dikshit recalled that the entertainment tax on cinema was 60 per cent up to March 31, 2003, and was reduced by half to 30 per cent with effect from April 1, 2003.

The Chief Minister expressed confidence that the latest reduction in entertainment tax would benefit the public. She said there are 56 cinema halls in Delhi at present of which 17 are multiplexes. The total number of screens stands at 99.

While entertainment tax from the cinema sector is 17 per cent of the total entertainment tax collections in the Capital per year, the 17 multiplexes account for 80 per cent of the total entertainment tax collected from cinemas.

The collection of entertainment tax from cinemas including theatres and multiplexes has been showing a constant increase in the past. It had gone up from Rs.23.65 crore in 2005-06, to Rs.29.89 crore in 2006-07 and then to Rs.38.07 crore in 2007-08.

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