Film tickets are moving into a higher tax bracket

The next blockbuster of your favourite ‘superstar’ may burn a hole in your pocket. The state government has proposed increasing entertainment duty on tickets priced on the higher side to dissuade multiplexes from arbitrarily increasing their cost. Of course, revenue generation is also an incentive.

Multiplexes have often been seen hiking prices of movies which set the box-office ringing.
Sources from the state revenue department say a steeper entertainment duty will be slapped only on tickets priced above Rs250 if a multiplex screening the movie increases their costs. Case in point, they say, is Ek Ta Tiger, the ticket prices of which soared after it became a hit.

For hiked ticket costs between Rs251 and Rs350, an entertainment duty of 10% will be charged on the existing 45%. Those multiplexes charging between Rs351 and Rs500 will face an additional 15% duty; others hiking costs to above Rs501 will also have to pay an extra 20%.

Official sources clarify that multiplexes which don’t tamper with ticket prices need not worry. Maharashtra has 64 multiplexes.

The government move is expected to earn Rs25-35 crore, which the state plans on pumping into the doddering Marathi film industry. It has also decided to help this industry by imposing a rule wherein single screen owners cannot price a ticket above Rs100, while multiplex owners will not be able to charge above Rs200. Theatre owners screening Marathi movies in the prime time slot — between 12 pm and 9 pm — will be able to levy an additional Re1 per ticket.

The state has also proposed to give a five-year tax exemption to beleaguered single screen theatres under municipal councils and in rural areas. Maharashtra has 549 single screen theatres, of which 278 have gone out of business.

The proposal for hiking entertainment duty will be presented before the state cabinet for approval on Wednesday.