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NEW
DELHI: Entertainment taxes should be capped at 16 per cent
across the country and restrictions on number of film shows
and freedom to operate any number of shows between 8 am and
1:30 am should be removed, according to the Federation of
Indian Chambers of Commerce and Industry.
This
is part of a 10-point revival package suggested by Ficci to
infuse a new lease of life to the multiplex industry, which
contributes 70 per cent of all film revenues.
Fici has said in its report that the archaic laws governing
regulation of cinema and a burdensome tax regime are posing
serious challenge to the multiplex industry, leading to closure
of cinema theatres and shutting out investment in multiplexes.
The
suggestions include standardisation and modernization of cinema
regulations under a Central Uniform Cinema Code to be applicable
across the country.
Ficci
wants removal of all pricing restrictions, mitigation of concerns
of adverse revenue impact on state finances, and tax reduction
to be done in phases over the next three years. It says taxes
paid on costs incurred should be allowed to be set off against
taxes collected on revenues, and licensing should be granted
under a 'single-window' clearance concept.
All
states should specifically permit computerized ticketing,
and digital distribution and exhibition should be specifically
permitted in the proposed new Cinema Code.
In
a detailed assessment of the problems dogging the multiplex
industry, Ficci has pointed out that India is amongst the
highly ‘under-screened’ countries in the world.
It has only about 12 screens per million in comparison to
the United States which has about 117 screens per million.
There is thus an estimated shortfall of an estimated 40,000
screens in the country.
Ficci
also pointed out that the entertainment sector was heavily
taxed.
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