Govt to charge extra entertainment duty from multiplexes in Maharashtra

No change in slab up to Rs 250. Above that a multiplex owner will have to pay additional 10-20% charge

The Maharashtra cabinat has passed the revenue department's proposal to charge extra duty from multiplex/ cinema exhibitors, who charge up and above Rs 250 per ticket from the viewers.

The move, which will add to the state government's purse, is aimed at discouraging the exhibitors from arbitrarily increasing the ticket prices ahead of big movies.

As per the new slab, the multiplex entertainment tax will be increased by 10-20%. From Rs 251-350, government used to charge 45% tax earlier, it will take away 49.5% instead. Similarly, from Rs 351-500 new tax is 51.75%, while for Rs 501 and above, 54% entertainment tax will be charged.

However, if a multiplex or theatre owner charges up to Rs 250 per ticket, he will not have to pay any additional surcharge.

“As a new practice, multiplexes hike prices of movies tickets for bigger movies by almost 30-40 per cent sometimes. The move will stop such practices,” owner of a single screen theatre in Mumbai said.

Maharashtra has 64 multiplexes and 549 single screen theatres. The cabinet has also approved to give a five-year tax exemption to single screen theatres under municipal councils and seven years exemption in rural areas.

It is also approved that theatre owners screening Marathi movies in the prime time slot — between 12 pm and 9 pm — will be able to levy an additional Rs 2 per ticket.

In the last fiscal, the state government collected Rs 87.38 crore from multiplexes and 108.16 crore from single screen theatres and is expecting to add Rs 25-30 crore more with the new tax structure.