Exhibitors want further cut in entertainment tax

PUNE: The Poona Exhibitors’ Association is not “fully satisfied� with the entertainment tax cut announced by the state government recently.
Though the tax has been revised from the earlier 48 to 60 per cent to 15 to 55 per cent, the PEA is firm on its demand of 35 per cent tax for Pune.
This will enable exhibitors to reduce ticket rates and attract a larger audience, the association has said.As per the new tax structure, which will come into effect from February 1, 2003, cinema halls within Brihan-Mumbai Municipal Corporation limits will pay 55 per cent entertainment tax instead of 60 per cent.
Cinemahalls in Pune and other cities being governed by municipal corporations will be charged 50 per cent tax while cinemahalls in rural areas will be charged up to 15 per cent. The reduction in the entertainment charges is only 10 per cent, which is absolutely inadequate, PEA president Sadanand Mohal said.
“The 50 per cent entertainment tax is unfair as the Andhra Pradesh, Gujarat, Karnataka, Kerala, Tamil Nadu and West Bengal governments are all charging less than 35 per cent,� he said.
Describing the cinema-hall business as “ill, suffering, dying and in need of artificial respiration,� Mohal said reduction in ticket rates was the only option left for attracting more audiences to the 28 cinema halls in the city.
“Some of the owners are seriously thinking of diversifying into the more economical marriage hall business,� he said.
PEA vice-president Vikram Chavan, who is also an executive committee member of the Cinematograph Exhibitors’ Association of India (CEAI), said the government would not lose any revenue by slashing tax.
Referring to the past record since 1982, he said reducing entertainment tax from 160 per cent to 60 per cent over the past two decades, had, in fact, brought a hike in revenue collection from 10.17 per cent to 23.75 per cent.