The Brihanmumbai Municipal Corporation's (BMC) proposal to raise the entertainment tax on Mumbai's cinemas and performing-arts venues by up to 570% cannot be implemented until the Maharashtra government approves it, the civic body has told the All Indian Cine Workers Association (AICWA), The Times of India reported.
In a letter dated November 5, the BMC said the revised rates had not been cleared by the state government. Until they are, the tax, known as Rangbhumikar, is being collected at the rates introduced in 2018.
What the proposal would change
According to the proposal, as reported by Box Office Worldwide:
- Air-conditioned cinemas and multiplexes: ₹60 to ₹400 a ticket, an increase of about 570%
- Non-AC cinemas: ₹45 to ₹200 a ticket
- Performing-arts shows: ₹50 to ₹100 a ticket
The revised rates need the approval of the state's Urban Development Department before they can come into force.
The industry's objection
The BMC proposed the revision in late September, and AICWA opposed it straight away over the effect on cinema halls. Its president, Suresh Gupta, wrote to Chief Minister Devendra Fadnavis asking for the hike to be withdrawn and met Deputy Municipal Commissioner Prashant Gaikwad.
"On Thursday, I received a letter from the BMC in which they have washed their hands of the matter. They said that the state government is in charge of this issue... But interestingly, it was the BMC that had submitted the proposal," Mr Gupta said, according to Mid-day, as cited by The Times of India.
The BMC said in its letter that the money it collects from the tax "is used for the overall development of Mumbai city".
What next
The decision now rests with the state government. If it approves the proposal, a multiplex ticket would carry ₹340 more in tax than now; if it doesn't, the 2018 rates stay.