In a bid to discourage random hike in ticket prices by multiplex managements, the state government plans to impose 10-20% entertainment tax on the tickets priced at Rs. 250 or more, in addition to the present 45% tax for each ticket.
The proposal is likely to be presented before the state Cabinet on Wednesday.
Currently, multiplex managements change the ticket rates for every film, depending on the audience response it gets.
According to the proposal, for a ticket sold at Rs. 250, the additional entertainment duty would be 10%.
While the entertainment tax for tickets priced between Rs. 351 and Rs. 500 would be 15%, the duty would be 20% for tickets costing more than Rs. 500.
Taking the complaints received over the hike of ticket prices for films such as Ek Tha Tiger and Life of Pi into account, the government has mooted the proposal. In some cases, the rates were hiked within a few days of the film’s release, the complaints stated.
The state government is expected to earn an additional revenue of Rs. 30 crore after the hike.
The government also plans to announce a tax exemption for single-screen theatres in rural areas.
The exemption will only be for theatres in areas governed by municipal councils.
The state government had allowed a five-year tax exemption for multiplexes. According to the owners of single-screen theatres, the exemption has badly affected their business and led to the closure of more than 50% theatres of 549 single-screen theatres in the last few years.