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Multiplexes Urge Maharashtra Govt to Reconsider Massive Entertainment Tax Hike
M
Moneycontrol•09-10-2026, 10:02
Multiplexes Urge Maharashtra Govt to Reconsider Massive Entertainment Tax Hike
- •The Multiplex Association of India is urging the Maharashtra government to reconsider a proposed 567 percent increase in entertainment tax on cinema shows in Mumbai.
- •The Brihanmumbai Municipal Corporation has proposed raising the tax on AC cinema halls and multiplexes from Rs 60 to Rs 400 per show.
- •Exhibitors warn that the hike will drive up ticket prices, hurt demand, complicate the revenue-sharing structure, and discourage investment in new screens.
- •Industry leaders note that a fixed per-show levy severely impacts screenings with low occupancy and goes against the ethos of GST.
- •A similar tax dispute is also brewing in Karnataka over a proposed 2 percent welfare cess on cinema tickets, which is currently contested in court.
Key Questions Answered
Exhibitors warn that the proposed 567 percent increase in entertainment tax from Rs 60 to Rs 400 per show will drive up ticket prices, hurt audience demand, and discourage investments in new cinema screens.
Unlike per-ticket levies, the Brihanmumbai Municipal Corporation has proposed calculating the entertainment tax on a per-show basis, placing a heavy daily financial burden on theaters even during low-occupancy screenings.
The planned 2 percent welfare cess is currently delayed as the Karnataka High Court recorded the state government's assurance not to take coercive action against petitioning theatre operators while the dispute remains under discussion.
