Mumbai: Brihanmumbai Municipal Corporation Proposes Theatre Tax Hike After 13 Years
Mumbai, 3rd January 2024: In a significant move, the Brihanmumbai Municipal Corporation (BMC) has decided to increase theatre taxes on various entertainment activities such as films, dramas, circuses, experiments, and games within the city. Notably, this tax hike comes after a hiatus of 13 years. The proposed taxes are slated for the fiscal year 2024-25 and await approval from the Maharashtra State Government before implementation.
BMC holds the authority to impose theatre taxes on films, dramas, circuses, Anand Bazar experiments, and games. However, Marathi and Gujarati play, films, one-act plays, and pageants are exempt from this theatre tax subsidy. Presently, these taxes are based on 2010 rates, with charges ranging from 50 to 60 rupees per game. While a proposal to incrementally raise these rates by 10 per cent each year was endorsed in the General Assembly back in 2015, it awaits approval from the Maharashtra Government, thus maintaining the existing rates. However, the assessment and collector department has now decided to move forward with the increase.
If approved, this tax adjustment is expected to generate an annual revenue of 10 crores for the BMC. The proposal for this rate hike has been submitted to the state government for their consideration and approval.
The current tax structure for various entertainment venues is as follows:
– Multiplex: Rs. 60 (Current) → Rs. 400 (Proposed)
– Air-Conditioned Cinemas: Rs. 66 (Current) → Rs. 200 (Proposed)
– Non Air-Conditioned Cinemas: Rs. 50 (Current) → Rs. 90 (Proposed)
– Drama, Jalsa, Other Entertainment Programs: Rs. 28 (Current) → Rs. 100 (Proposed)
– Circus, Anandamela: Rs. 55 per day (Current) → Rs. 100 per day (Proposed)
– Other Entertainment Programs: Rs. 30 (Current) → Rs. 70 (Proposed)
The proposed increase particularly targets multiplexes, considering their emergence with multiple screens, varying seating capacities, and ticket prices ranging from 200 to 1550 rupees. If implemented, the new tax rates are expected to bring additional revenue to BMC.
