This year, everything from eating out to buying a smartphone and heading out has become costlier, everybody around has become cash strapped. And very soon entertainment will burn another hole in common man’s pocket as the State Government will levy entertainment duty on multiplexes and cinema halls from April 1.
last year, in exercise of powers conferred by clause (e) of sub-section (1) of section 9 of the Jharkhand Entertainment Tax Act,2012(Jharkhand Act 13 of 2012) the Governor had exempted entertainment tax imposed in respect to the exhibition of films in Cinema Houses and Multiplex Cinema Complex. The notification, which came into force with on April 1, 1 2012, will remain valid up to March 31 2013.
Entertainment tax will stay at 35 per cent and further tariff will be imposed according to the price of the ticket according to sitting arrangement. Anything beyond that will be applicable according to business of the film.
Commercial Tax Department Secretary M.R Meena said, “The entertainment tax will come into function from April. The one year time of exemption is over for the theatres across the city.”
What will get cinema-loving Ranchiites sulking the most will be the price of a simple movie skyrocketing. A movie that could be wrapped up within Rs.500 might now make a dent worth Rs.1, 000 at least, counting all the add-on costs of popcorns, colas, petrol, parking rates and the eating out that follows! Saloni Sood, a Mass Communication student, said, “The taxes keep increasing, but our pocket money never gets a hike. Watching movies is my favourite timepass, but now I will have to think twice before doing that too. At this rate, movie-going will surely go from being a twice-a-month affair to a once-in-two-months event.”
Meanwhile, cinema halls and multiplex authorities have expressed concern over the decision of the commercial taxes department.
“To promote the multiplexes and theatres in the city, government gave relief from entertainment tax for a period of one year,” said Pankaj Mathur, General Manager-Operation, Glitz Multiplex.
Meenakshi Cinema Hall, one of the oldest cinema halls in the city, is not in a very sound condition and people have stopped coming to the hall. Ravi Agarwal, owner of the Hall said, “During the past decade, many theatres downed shutters as nobody turns to them. We also cannot predict that the future of our Hall. When the price of ticket is Rs.40 and Rs. 60 people find it costly then after incorporating entertainment tax what they will feelIJ” Multiplexes like Fun Cinemas and Glitz Cinema have been given the exemption of five years from the entertainment tax.