Multiplex operators correct on buzz BMC proposes theatre tax hike

Shares of two multiplex operators declined over 2% each after the media reported that the Brihanmumbai Municipal Corporation (BMC) is planning several-fold increase in theatre tax.

PVR slipped 2.67% to Rs 1,270.95 while Inox Leisure fell 2.12% to Rs 267.45.

The stocks also witnessed profit booking. Shares of PVR gained 7.5% while Inox Leisure rose 2.5% in the past two sessions.

Meanwhile, the S&P BSE Sensex lost 229.72 points or 0.53% to 43,047.93.

According to media reports, BMC has proposed a hike in theatre tax for multiplexes, cinema halls, theatres as well as music shows and entertainment programmes. The proposal is to increase it to Rs 1,000 per show from the existing Rs 66 for super deluxe multiplexes, while the tax for indoor and outdoor, national and international music shows and other entertainment programmes has been pegged at Rs 10,000 per show or per day from the current Rs 33, reports added.

Further, the BMC is reportedly planning to increase theatre tax of AC cinema halls to Rs 200 per show from Rs 66, for non-AC cinema halls to Rs 150 per show from Rs 50, for plays and 'tamasha' (folk form of Marathi theatre) to Rs 100 per show from Rs 28, and for circuses and fairs to Rs 100 per day from Rs 55.

The proposal is likely to be discussed in the BMC Standing Committee meeting on Wednesday. The proposal will be later sent to the state government for approval, reports suggested.

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