Entertainment tax collection falls short in Saurashtra

The entertainment tax collection from the Saurashtra Kutch region of the state has been disappointing with the tax collection falling short by 40.85 per cent of the targeted Rs 17 crore.

The government has collected Rs 10.33 crore during the year 2003-04 as entertainment tax from the region, with Rajkot region accounting for 40 per cent of the tax collected from Saurashtra.

A tax official said the steep increase in cinema ticket charges, advent of several tax-free multiplexes and video piracy meant that people are not rushing to the theatres.

The state government has allowed multiplexes to enjoy a 100 per cent entertainment tax holiday under its tourism policy from May 10, 2002.

As per the Gujarat government's policy, 50 per cent entertainment tax is applicable on theatres in the urban centres and 45 per cent on those in the rural areas of the state. Due to exorbitant taxes and lack of sufficient audience for films, 12 cinema theatres and 10 video cinema houses were closed down in the Saurashtra Kutch region.

This also has resulted in the less revenue, officials said. There were ten cinema theatres in Rajkot city but continuous losses meant that three of then were forced to shut down by 2002-03.

At present, there are 27 cinema theatres operating in the Rajkot district. During the last financial year, a total of Rs 1.35 crore was collected from Kutch.

While Rs 58 lakh was collected from Surendranagar, Rs 1.32 crore was collected from Bhavnagar.

While 58 theaters run under the fixed tax scheme, 57 cinema theatres operate as per actual base tax scheme in Saurashtra and Kutch region.