Multiplexes multiply city’s theatre tax collection

MUMBAI: The multiplex boom in the city has ensured a six-time rise in the collection of theatre tax or show tax in the last six years. With the number of theatres increasing over the years, BMC’s tax collection has also gone up.
In 2007, BMC collected Rs 52,47,937 from 168 movie and drama halls. The collection increased to Rs 62,45,319 from 176 halls in 2008 to Rs 3,15,82,863 in 2012.The revenue collection, said officials, goes to the general revenue income booty.
“Right now, we charge the multiplexes Rs 60 per show per day, but in some cities, they charge Rs 100,” said an official from BMC’s collection and assessment department. “Since its inception in the 1900s, the tax was considered to be a lucrative source of revenue. However, compared to what theatres earn today, the tax is not much,” the official said.
The BMC has been levying theatre tax since 1959. But officials say it was not increased since 1975. In 2002, the BMC proposed an increase, but was rejected by the state. In 2010, however, the taxes were upped.
The theatre tax for AC halls increased from Rs 20 per show to Rs 60 while for non-AC halls it increased to Rs 45 from Rs 15. The tax for drama halls increased from Rs 12.50 to Rs 25 per show, while that for a circus or a fair, it went up to Rs 50 from Rs 25. Marathi and Gujarati movies are tax exempted.
Vice-president of Cinema Owners and Exhibitors Association of India Nitin Datar said, “All theatres have been paying show tax, which was hiked to Rs 60 per show, which is in addition to other taxes. Single-screen cinemas find it difficult to pay these taxes and several representations to the government and corporations have yielded no result.”
The theatres also pay entertainment tax, which has increased over the years. Cinemax Cinema CEO Sunil Punjabi feels two factors have contributed to the jump. “From 2008 to 2012, Cinemax has seen a compound annual growth rate of 23% at the box office, which led to an overall growth in the collection. Moreover, theatre owners admit sales have seen a substantial growth in the past years.