Movies

Maharashtra Govt allows theatres to hike service charge

MUMBAI: In a decision that would make theatre and multiplex owners happy, the government of Maharashtra has allowed theatres and multiplexes to levy an additional two rupees as service charge.

The decision was taken to improve infrastructure at the theatres by amending the Mumbai Entertainment Tax Act.


Says Cinemax CEO Devang Sampat, “It is true that there is news that the government has given clearance to theatre and multiplex owners to increase service charges, but that doesn’t mean that we are going to hike our ticket rates. After all, service charge is a benefit to theatre-owners. But we haven’t yet got a copy of the Government Resolution (GR).”


Ordinary and air cooled theatres can collect service charge up to rupees five from earlier rupees three and air conditioned theatres up to rupees six from the earlier rupees four per ticket.


“Yes there is a talk about the government’s decision. But we are not going to increase our ticket rates. As it is, we are likely to hike our ticket rates by Re 1. We had a talk on the same in a budget meeting held a few days ago, the approval of which is expected any day now,” avers Fun Cinemas CEO Vishal Kapur.

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