Civic body plans theatre tax hike, but not to Rs 1,000 | delhi | Hindustan Times
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Civic body plans theatre tax hike, but not to Rs 1,000

Theatre tax, levied by the Municipal Corporation of Delhi on cinema theatres, will not jump to Rs 1,000 per show. It is likely to be about Rs 200.

delhi Updated: Jul 04, 2009 22:21 IST
HT Correspondent

Theatre tax, levied by the Municipal Corporation of Delhi on cinema theatres, will not jump to Rs 1,000 per show.

It is likely to be about Rs 200.

Mayor Kanwar Sain said the civic body would review the policy on theatre tax.

Sain said the proposal, sent to the Delhi government about five years ago, seeks amendment in the IVth schedule of the Delhi Municipal Act (DMC) Act.

“The proposal envisages to increase the maximum leviable tax by the MCD on cinema theatres — known as Theatre Tax (tax per show) — from Rs 7 to Rs 10 per show to a maximum of Rs 1,000 per show,” said Sain. “The upper limit has been envisaged for any future increase and does not necessarily imply that it would be increased to Rs 1000 per show. It will be lower than that.”

The civic body is planning to fix the theatre tax at around Rs 200.

The mayor said the proposal was sent to the Delhi government since it was felt that there has been no increase in the tax in the last 50 years.

“But it needs to be reviewed in the present circumstances because the cinema industry is badly hit by cable television, satellite television and piracy,” said Sain. “The occupancy in theatres has dropped considerably and they are merely surviving on advertisement revenues and canteen sales.”

He said the MCD and the Delhi government, through entertainment tax, advertisement tax and property tax, were already taxing the theatres.