Chandigarh civic body proposes 30% entertainment tax on movie tickets
Chandigarh’s municipal corporation (MC) has proposed to levy 30% entertainment tax on movie tickets sold in multiplexes in the city. For single screen theatre, however, the proposed tax is 20% for tickets priced up to Rs 100. Apart from this, Rs 250 per show will be charged from multiplex owners for running movie screenings.
The proposal got nod from MC commissioner KK Yadav on Tuesday and will now be tabled before the general house on September 12.
At present, multiplexes charge between Rs 130 to Rs 250 per ticket, with a few charging even Rs 600 per ticket.
While the proposed tax is set to pinch the pockets of moviegoers, Yadav, however, said, “They (multiplexes) must adjust their ticket prices within the existing rates after we reintroduce the tax.”
He said when the tax was abolished in UT in 2017, there was no change in ticket pricing.
Once approved by House, the proposal will be sent to the UT administration for notification that may take two to three months.
MC is eyeing to earn Rs 15 crore annually from entertainment tax.
Tax set to return after two years The practice of levying entertainment tax was discontinued two years ago after the goods and services tax (GST) was introduced. Under the GST regime, the power to levy entertainment tax was shifted to municipal bodies.
The Parliament in August 2017 passed the Punjab Municipal Corporation Law (Extension to Chandigarh) Amendment Bill, relieving the UT administration of levying entertainment tax and delegated the power to the MC.
However, the MC was not able to levy it due to one reason or the other. The nod for the proposal came after a recent review meeting, wherein the MC chief directed the officials to fix rates for different modes of entertainment in Chandigarh. The proposal will be now tabled for approval of the House.