Entertainment tax cut to light up small screens
PR Dasmunsi suggestion to state governments to reduce entertainment taxes to 25 per cent, if implemented, is likely to result in better services at value formats from multiplex chains.business Updated: Sep 23, 2007 23:11 IST
Information and Broadcasting Minister PR Dasmunsi suggestion to state governments to reduce entertainment taxes to 25 per cent, if implemented, is likely to result in better services at value formats from multiplex chains. Chances of fall in ticket prices at multiplexes, though less, are also not ruled out.
According to Atul Goel, chief executive officer, E-City Ventures, which operates Fun Cinemas chain: “Multiplexes charge for the experience they provide. However, the move may encourage players to introduce value offerings. We, have a format called ‘Talkie Town’ operating at four places. We intend to roll out 250 ‘Talkie Town’ screens by 2011.” The price of ticket is in the range of Rs 40-70.”
PVR also has a model for smaller cities in the form of PVR Talkies, which is present in Aurangabad, Latur and Baroda. Ranjan Singh, general manager, sales and marketing, PVR Cinemas said: “We intend to have 40 more screens under PVR Talkies through 10 properties in the next one year. Prices at PVR Talkies start at Rs 30 and go up to Rs 90.”
Rasesh Kanakia, chairman, Cinemax said, “If state governments cut entertainment taxes, single screens can survive and also offer better services.” Cinemax has three single screen properties of a total of 39 screens. Prices begin from Rs 50 against Rs 120 at multiplexes.
Inox, which has 18 properties all over the country, has recently started exhibiting at Milan Mall, Santacruz with a single screen where prices start at Rs 59. Alok Tandon, chief executive officer of Inox Lesiure Ltd said, “The possibility of a reduction in ticket prices cannot be ruled out. If the tax cut is implemented, the move will help patrons, exhibitors and other parties involved.”
First Published: Sep 23, 2007 23:05 IST