The Hindu Business Line : Fresh GO on entertainment tax in AP

TO revive the Telugu film industry and curb video piracy, the State Government has issued a new Government Order (GO) for the collection of entertainment tax from cinema theatres, while repealing the existing slab system for entertainment tax collection.

Announcing this at a press conference here on Sunday, the State Minister for Commercial Taxes, Mr Konathala Ramakrishna, said the new GO would help promote good low-budget movies and also enable the common man to watch movies with the entire family in the theatres at affordable rates.

The Government has scrapped the existing slab system for the collection of entertainment tax for cinema halls located under the jurisdiction of municipal corporations, selection grade and special grade municipalities.

According to the Minister, the entertainment tax would be charged on the basis of the actual sale of tickets. Stating that the slab system would continue for theatres located in the non-municipalities, he, however, said their number is less than 20 per cent of the State's theatres.

Around 90 per cent of Rs 80 crore of revenues collected annually in the form of entertainment tax is being allocated to the local bodies, he said.

The low-budget Telugu films produced in the State will now attract a tax of seven per cent, high budget Telugu films produced in the State 15 per cent and films produced outside the State, including dubbed films and films in other languages, 20 per cent.

The old (five years and above) and repeat run Telugu films will be charged seven per cent tax. The new rates have come into force from Saturday.

To improve amenities for viewers, the Government has permitted the theatre owners to charge Rs 1 and Rs 2 as tax-free maintenance charges for non-air-conditioned theatres and air-conditioned /air cooled theatres, respectively (up from Rs 0.50 and Rs 1). Apart from directing the exhibitors to reduce the admission rate by 30 per cent for higher classes, the Government has also asked them to observe a ceiling on admission rates for these classes.

In the case of theatres located in municipal corporations, air-conditioned theatres should collect a maximum of Rs 40 for higher classes, while the air cooled theatres can charge Rs 35 and ordinary theatres Rs 25.

In selection grade and special grade municipalities, the collection rates are Rs 30 per air-conditioned theatre, Rs 25 per air-cooled theatre and Rs 20 per ordinary theatre.

The Government has also directed the exhibitors to increase the seating capacity in the cinema halls in the last classes by at least 20 per cent if the theatres have three or four classes.

In the case of theatres having only two classes, they should have at least 30 per cent of total seating capacity earmarked for the last class, the Minister said.

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