Multiplex rates may dip if govt extends tax relief
2:13 PM
Sujit Mahamulkar (THE TIMES OF INDIA; August 14, 2016)
If this development has a
happy ending, movie-goers may end up paying less for tickets at
multiplexes. The Multiplex Association of India (MAI), that
represents more than 18 cinema chains operating over 400 multiplexes
across the country, has written to finance minister Sudhir Mungantiwar,
demanding reduction in entertainment tax to 20%, which is currently 45%
in Mumbai and 40% in the rest of the state.
Sources said the minister may be inclined to consider the proposal, but only if multiplex owners pass on some benefits to movie-goers by reducing ticket prices. Any relief would be well received by movie-goers. However, a decision has not been taken yet. A meeting with MAI may take place in September, added sources. When contacted, Mungantiwar said, “A decision about multiplexes has not been taken yet.“
MAI represents more than 130 multiplexes in the state with over 500 screens. Apart from the entertainment tax issue, MAI has also pointed out administrative difficulties related to licence renewal, permissions and clearances. “It is extremely difficult for a national chain of multiplexes, having 20-25 properties in a state, to deal with multiple permission clearances every year,“ said Deepak Ashar, president of MAI in a memorandum submitted to the finance minister. Permissions and licences permitting payment of entertainment tax on a weekly basis, getting a fire safety NOC, renewal of PWD electrical and civil licence, health, canteen, hoarding and neon licences should be given for five-year periods instead of on an annual basis, demanded MAI.
Given that ticket rates are very high, it is possible that the state may consider extending concessions if the rates can be brought down. Ashar, however, said there may not be any cut in ticket prices even if entertainment tax was reduced.
He said the state would get more revenue though. “I am sure the state would get more revenue through entertainment tax and investment in the industry will be viable in the state. And people will get more options - more multiplexes and screens,“ he added.
If this development has a
happy ending, movie-goers may end up paying less for tickets at
multiplexes. The Multiplex Association of India (MAI), that
represents more than 18 cinema chains operating over 400 multiplexes
across the country, has written to finance minister Sudhir Mungantiwar,
demanding reduction in entertainment tax to 20%, which is currently 45%
in Mumbai and 40% in the rest of the state.Sources said the minister may be inclined to consider the proposal, but only if multiplex owners pass on some benefits to movie-goers by reducing ticket prices. Any relief would be well received by movie-goers. However, a decision has not been taken yet. A meeting with MAI may take place in September, added sources. When contacted, Mungantiwar said, “A decision about multiplexes has not been taken yet.“
MAI represents more than 130 multiplexes in the state with over 500 screens. Apart from the entertainment tax issue, MAI has also pointed out administrative difficulties related to licence renewal, permissions and clearances. “It is extremely difficult for a national chain of multiplexes, having 20-25 properties in a state, to deal with multiple permission clearances every year,“ said Deepak Ashar, president of MAI in a memorandum submitted to the finance minister. Permissions and licences permitting payment of entertainment tax on a weekly basis, getting a fire safety NOC, renewal of PWD electrical and civil licence, health, canteen, hoarding and neon licences should be given for five-year periods instead of on an annual basis, demanded MAI.
Given that ticket rates are very high, it is possible that the state may consider extending concessions if the rates can be brought down. Ashar, however, said there may not be any cut in ticket prices even if entertainment tax was reduced.
He said the state would get more revenue though. “I am sure the state would get more revenue through entertainment tax and investment in the industry will be viable in the state. And people will get more options - more multiplexes and screens,“ he added.
Subscribe to:
Post Comments (Atom)
Post a Comment