‘Include entertainment tax in GST’

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New Delhi, Apr 8: The Multiplex Association of India (TMAI) in a meeting last week with Satish Chandra, member-secretary, empowered committee of state finance ministers has put forward a case to subsume entertainment tax under goods and services tax (GST) regime.

According to Atul Goel, chairman, TMAI, and managing director e-city ventures, owing to varied tax structure in the states (ranging between 15 to 50%), the development of cinema infrastructure has been distorted and disproportionate across space.

The entertainment tax on Hindi content varies from around 5% in Kerala to 50% in Punjab, MP, Rajasthan and UP. Due to lower entertainment tax in Tamil Nadu (no entertainment tax on Tamil content) and Andhra Pradesh (15% tax on Telugu content), there has been large-scale investment in cinema infrastructure there. The two states account for 41% of total theatres in the country.