Entertainment tax scrapped for Karnataka multiplexes

Entertainment tax scrapped for Karnataka multiplexes

BANGALORE: Tickets prices for films running in multiplexes are set to be lowered as the state government cabinet exempted them from the payment of entertainment tax on all films, including non-Kannada films for a period of three years.

The formula decided by the cabinet on Thursday exempts 100 per cent entertainment tax for the first three years followed by a 75 per cent exemption for the next two years. An important condition for the exemption is reservation of two screens for Kannada films - this is to placate the Kannada film industry which just recently had to eat crow when its demands for a twelve week moratorium which was later reduced to first seven weeks and later to three weeks from the date of first release of a non-Kannada film in its state of origin.

The government has also promised to pamper further during the next state budget the Kannada film industry which has been demanding a re-introduction of service charges.

At present all non-Kannada film tickets carry an entertainment tax of forty percent, while Kannada films are totally exempted from the payment of entertainment tax.