The Brihanmumbai Municipal Corporation has proposed a steep increase in theatre tax on cinema halls and other entertainment venues, with the tax on multiplex cinemas set to rise to Rs 400 per show from the existing Rs 60 for air-conditioned cinemas.
What are the proposed charges?
The proposed revision, pending with the UD department, could see the tax on multiplex cinemas increase to Rs 400 per show from the existing Rs 60 for air-conditioned cinemas. The proposal provides for a tax of Rs 200 per show for single-screen AC cinemas, Rs 90 for non-AC cinemas, and Rs 100 per show for drama, jalsa and other entertainment programmes. The civic administration has proposed retaining the existing 2014-15 rates for 2027-28 until the state government approves the revised rates and issues a notification in the Official Gazette.
How will it impact your movie tickets?
Ticket prices for movies and performing arts events, including plays and concerts, in languages other than Marathi and Gujarati are likely to rise sharply if the proposal is implemented.
Exhibitors and managers of performing arts venues are required to pay entertainment tax to civic authorities for hosting screenings and shows. However, the additional cost could ultimately be passed on to consumers, as exhibitors typically factor the tax into ticket prices.
When will the proposal come in place?
BMC's proposal is still awaiting approval from the state government’s Urban Development (UD) Department, civic officials said. Until the revised rates are sanctioned and notified, only the existing rates will apply, officials told TOI. Th proposal, if approved, will be implemented during financial year 2027-28.
Tajinder Tiwana, a law committee member, told TOI that the proposal was discussed in detail during the law committee meeting held on Tuesday and would be deliberated further.
Why is BMC proposing higher tax?
The BMC has been pursuing approval of the revised rates with the state government. According to the civic proposal, the revised rates will come into force only from the date specified by the state government in its Gazette notification.
“For now, the old rates will continue to apply as the revised rates are yet to be sanctioned by the Urban Development Department,” a BMC official said.
The BMC has also proposed continuing the exemption from theatre tax for Marathi and Gujarati films, plays, one-act plays and tamashas, irrespective of the category of theatre.
The 6% concession available since 1959 to taxpayers who pay their monthly theatre tax in advance by the fifth of the month is also proposed to continue for 2027-28.
The annual theatre tax rates for 2027-28 will require approval from the Law Committee, Standing Committee and the Municipal Corporation.
