Sushma for ceiling on entertainment tax

(Posted on 20 January 5:45 pm)

The lack of standardisation of entertainment tax as applied in various parts of the country has been a sore point for a long time now. This looks set to change if information and broadcasting minister Sushma Swaraj is to be believed.

"The government is keen to bring about a rationalisation of entertainment tax," Swaraj told the Economic Times on Friday.

If what she says comes true it will be welcomed with relief in the film industry especially which has been asking for precisely this for a number of years now. Entertainment tax ranges from around 14 per cent to more than 100 per depending on the state. In India, entertainment tax is a state subject which is why rates vary from state to state.

Swaraj said the issue would be high on the agenda of the state information ministers conference being held in the capital on Sunday. Swaraj said the Central government would try to bring about a consensus among states for putting in place a ceiling for entertainment tax.

While cinema has been at the centre of the debate about entertainment tax, the cable industry would be also very interested in the developments because they have also been raising similar arguments.

Cable operators have been up in arms in the western state of Maharashtra for a year now following the doubling of entertainment tax there to 30 per cent last year.

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