Mumbai: Movie tickets in Mumbai could become costlier by Rs 5-10 if the Brihanmumbai Municipal Corporation’s (BMC) proposed hike in entertainment tax on cinema shows is implemented. The civic body has proposed increasing the levy on multiplexes to Rs 400 per show from the existing Rs 60, a nearly sevenfold increase that exhibitors fear could affect box office revenues and lead to higher ticket prices.
The proposed tax is levied per show rather than per ticket. Exhibitors and producers have indicated that the additional cost could eventually be passed on to moviegoers, potentially pushing up average ticket prices in the city.
“Without getting into granular details, the hike of Rs 340 entertainment tax per show will be passed on to consumers. This may lead to an increase of Rs 5-10 per ticket,” an exhibitor told The Economic Times, requesting anonymity.
Mumbai has a high concentration of multiplexes and single-screen theatres, with average ticket prices majorly higher than the national average. The city also accounts for an estimated 20-25 per cent of India’s gross box office collections, making any change in cinema taxation key for the exhibition and distribution sectors.
However, the proposed hike has not yet come into effect. The BMC is awaiting approval from the state government’s Urban Development Department. Until the revised rates are sanctioned and notified through a Gazette notification, cinema halls and other entertainment venues will continue to pay the existing tax.
Proposed Revised Theatre Tax Rates
Under the BMC’s proposal, multiplexes would pay Rs 400 per show, compared with the existing Rs 60 for air-conditioned cinemas. Single-screen AC cinemas would be charged Rs 200 per show, while non-AC cinemas would pay Rs 90. The proposed levy for dramas, jalsas and other entertainment programmes is Rs 100 per show.
At present, AC cinemas pay Rs 60 per show and non-AC cinemas Rs 45. Dramas and other entertainment programmes attract a tax of Rs 25 per show, while circus performances and funfairs are charged Rs 50 per day. BMC Law Committee member Tajinder Tiwana said the proposal was discussed at length on September 22 and would be taken up for further discussion.
The civic body has proposed retaining the existing theatre tax rates for 2027-28 until the state government approves the revised structure. The new rates will come into force only from the date specified in the official notification.
Marathi, Gujarati Productions To Remain Exempt
The proposed structure retains the existing exemption for Marathi and Gujarati films, plays, one-act plays and tamashas, irrespective of the type of theatre in which they are staged. The BMC has also proposed continuing a 6 per cent concession for taxpayers who pay their monthly theatre tax in advance by the fifth of the month. The concession, introduced in 1959, is proposed to remain applicable during 2027-28.
The revised annual theatre tax structure will require approval from the BMC Law Committee, Standing Committee and the civic house, in addition to the state Urban Development Department’s sanction. Until the necessary approvals are secured, the existing rates will remain applicable.
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