Chandigarh

Movie tickets to cost more in Chandigarh, 30 per cent entertainment tax

July 05, 2017 09:24 PM
PVR in Chandigarh

Chandigarh: The rates of movie tickets are set to increase as the Municipal Corporation will impose 30 per cent entertainment tax on theatres and multiplexes after being authorised by the Centre to levy and collect entertainment tax and duty on entertainment and amusement.

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 This tax will be in addition to the 28 per cent Goods and Services Tax (GST), which has already been imposed. Sources said MC officials had indicated that the notification would be implemented soon. Asha Jaswal, Mayor, said she was yet to get the notification, but it would certainly be  implemented as it would increase the revenue of the  MC, which would be used for developmental works.  

The sources said once the notification was implemented, the movie industry would have to pay 58 per cent tax that would also increase the rate of tickets. The decision has left the managements of multiplexes worried. They said it would ruin the entertainment industry. An official of a multiplex said though they were yet to get information about the additional tax, if it was imposed, it would put extra burden on movie goers. He said the notification was a jolt for them as they were not taken in the loop. In fact, they were not even informed and the decision came as a shocker.

The Ministry of Law and Justice has issued an ordinance amending the Punjab Municipal Corporation Law (Extension to Chandigarh) Act, 1994, to empower the MC to collect entertainment tax and duty. The  MC will get Rs 17 crore annually from theatres and multiplexes. Meanwhile, Ajay Jagga, an advocate, has written to Parimal Rai, UT Adviser, to review the decision as it will  shoot up the movie prices and theatres might have to shut their operations. Moreover, he said the ordinance  meant a movie ticket was subject to two taxes, which was arbitrary and not as per the Constitution. At present, the rates of tickets at multiplexes start from Rs 150 to Rs 650 and vary on weekdays and weekends.

 

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