IN ORDER to upgrade and modernise cinema halls in small towns, the State Government has implemented the Encouragement Scheme Act, 2006.
According to the Act, Rs 5 lakh or more could be spent by the cinema hall owners towards modernisation of their establishments in small towns.
This would also secure an exemption in entertainment tax for three years. As per government directives, cinema halls outside the municipal limits would be entitled for tax exemption. Under the Madhya Pradesh Entertainment and Advertisement Tax Act, the encouragement scheme has already come into force from October 10 to provide maximum facilities to cinemagoers of small towns.
To obtain benefits under the scheme, an application in the prescribed format should be submitted to the district collector. A committee, under the chairmanship of district collector, has been constituted for the same. The committee will comprise the divisional deputy commissioner of excise, officials of executive engineer level in the construction department, district assistant commissioner (excise) and district excise officer as members.
The district committee, on receiving a proposal from the cinema hall owners after spot inspection, will grant permission for carrying out modernisation work.
If the amount spent on modernisation is adjusted before the three-year term, exemption from entertainment tax would be withdrawn.