Mumbai moviegoers may have to shell out more for their cinema outings if a proposed revision of the city’s entertainment tax gets approval. The Brihanmumbai Municipal Corporation (BMC) has proposed a steep hike in theatre tax, with the levy on multiplexes and air-conditioned cinema halls set to rise from Rs 60 to Rs 400 per show.
The proposed increase amounts to nearly 567%, commonly reported as a 570% hike. The revised rates would cover cinema halls as well as other entertainment venues, including plays, concerts and other performing arts programmes. However, the new rates are not applicable yet and will come into effect only after the required approvals and an official notification.
What is the proposed new entertainment tax?
Under the BMC’s proposal, the entertainment tax for multiplexes and air-conditioned cinemas would increase from Rs 60 to Rs 400 per show. Single-screen AC cinemas would see the proposed levy rise to Rs 200, while non-AC cinema halls would have a proposed rate of Rs 90.
For performing arts events such as plays and concerts, the proposed tax would increase from Rs 50 to Rs 100. Other entertainment programmes would see the levy rise from Rs 25 to Rs 75.
The proposal also introduces a Rs 90-per-ticket tax for mini-theatres and venues used for <a href="https://comicvibe.com/playing-video-games-with-my-22-year-old-son-has-brought-me-to-tears/” title=”Playing video games with my 22-year-old son has brought me to tears”>video exhibitions, a category that was not previously covered under the same tax structure.
Will movie tickets become Rs 400 more expensive?
Not necessarily. The Rs 400 figure refers to the proposed entertainment tax payable by exhibitors for a show and does not automatically mean that every movie ticket will increase by Rs 400.
However, exhibitors could potentially pass some of the additional operating cost on to consumers through ticket pricing. The eventual impact on moviegoers would depend on how cinema operators adjust their prices if the revised tax structure comes into force.
Marathi and Gujarati content to get full exemption
The proposed tax structure also includes an exemption aimed at supporting regional entertainment.
The BMC has proposed a 100% entertainment tax exemption for cinema halls, multiplexes and theatres screening Marathi and Gujarati films, as well as venues hosting Marathi and Gujarati plays and concerts.
Why is BMC proposing the hike?
The proposed revision comes after years of largely unchanged theatre tax rates. The existing structure dates back several years, with the current rates having remained unchanged for a long period.
The entertainment tax is paid by exhibitors and managers of entertainment venues to the civic authorities. According to reports, the BMC expects the revised structure to increase its annual revenue from the tax.
The proposal is intended for the 2027-28 financial year, subject to approval from Maharashtra’s Urban Development Department and the subsequent issuance of an official notification.
When will the new rates come into effect?
For now, Mumbai moviegoers do not need to pay the proposed higher tax. The revised rates are still awaiting approval from the state government’s Urban Development Department.
The BMC has indicated that until the new rates are sanctioned and formally notified, the existing entertainment tax rates will continue to apply.
If approved, the proposal could make entertainment outings in Mumbai more expensive, particularly at multiplexes, while providing a full tax exemption for Marathi and Gujarati films, plays and concerts.
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