Maha reduces proposed hike in movie ticket prices

The state cabinet on Wednesday reduced the proposed 20% hike in entertainment duty on movie tickets. Instead it approved the proposal to raise entertainment tax on cinema tickets above Rs250.

The state cabinet on Wednesday reduced the proposed 20% hike in entertainment duty on movie tickets. Instead it approved the proposal to raise entertainment tax on cinema tickets above Rs250.

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According to the original proposal, the hike in entertainment duty was to range from 10% to 20% on tickets that cost more than Rs250. However, the cabinet has revised it and decided to levy a surcharge on the existing entertainment duty of 45%. The revenue department claimed the hike in entertainment duty was to dissuade multiplexes from arbitrarily hiking ticket rates.

So, entertainment tax will stay at 45% for tickets under Rs250. It will be 49.5% for tickets priced at Rs251-350, 51.75% for tickets at Rs351-500 and 54% for anything beyond that.

At the same time, theatres in the state will be allowed to almost double the service charge they levy on customers – from Rs6 to Rs11 on all tickets.

“Following HC’s orders, the government cannot regulate ticket rates. Hence we have tried to strike a balance to benefit both patrons and theatre operators,” he said.