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BMC's 570% Tax Hike for Cinemas Awaits Approval
7 Nov
Summary
- Mumbai's proposed cinema tax hike awaits state government approval.
- The proposed increase could see taxes rise by up to 570%.
- Existing tax rates remain in effect as the proposal is reviewed.
The proposed revision of entertainment tax rates for Mumbai's cinemas and performing arts venues is currently pending approval from the Maharashtra government. The Brihanmumbai Municipal Corporation (BMC) has officially communicated to the All Indian Cine Workers Association (AICWA) that the significantly increased rates require state-level clearance before implementation.
This development follows the BMC's suggestion in late September to raise ticket taxes by up to 570%. The proposed hike, which could see taxes for air-conditioned theatres rise from Rs 60 to Rs 400 per ticket, faced immediate opposition from industry representatives like AICWA.
AICWA president Suresh Gupta had urged the state government and BMC to reconsider the proposal. A written response from the BMC on November 5 confirmed that the revised rates, which are subject to approval by the Maharashtra government's Urban Development Department, have not yet been cleared.
Currently, the 'Rangbhumikar' tax is being collected at the rates established in 2018. Gupta welcomed the prompt response from the BMC, noting that the old rates continue to apply. The proposed changes affect AC theatres, non-AC halls, and performing arts venues, with increases ranging from 400% to 570% per ticket.
