To boost the prospects of multiplex cinema halls in smaller towns along with bigger urban centres in the state, Uttar Pradesh today announced a scheme to waive entertainment tax (ET) on such properties.
The multiplexes becoming operational in smaller towns will have cent per cent ET-waiver for the first three years and 75 per cent waiver in the subsequent two years. A decision to this effect was taken at a cabinet meeting chaired by Chief Minister Mayawati. The promotional scheme shall be valid from the date of issuance of the notification till March 31, 2015.
While the new policy gives greater incentives to multiplexes in smaller towns and cities, those coming under the jurisdiction of municipal corporations and Noida/Greater Noida will also be eligible to avail the benefits to lesser extent for the next five years of their operation. The multiplex properties coming up in Noida/Greater Noida and municipal corporation limits will, like the aforementioned, enjoy 100 per cent ET benefits in the first year of operation; 75 per cent in the second and third year; and 50 per cent in the following two years. From the sixth year onward of their operations, all the multiplexes irrespective of their location would be liable for the full payment of ET. Those multiplexes would be eligible for the benefits that have been developed between the intervening period of notification and March 31, 2015. However, the multiplexes would need to obtain the necessary approval for construction under the UP Cinematograph Rules, 1951 and a licence to screen films. The multiplex owners will have to provide all the details about the property to the respective district magistrate. If the application is not processed within three months, the multiplex owners can petition the state government.
