Multiplexes not to be taxed for 3 years

Multiplexes not to be taxed for 3 years

Deccan Herald

The State Cabinet on Thursday granted total exemption from entertainment tax to multiplexes to provide a boost to the entertainment and tourism industry.

After the Cabinet meeting, Information Minister B Shivaram told reporters that total exemption from entertainment tax would be granted to the multiplexes for the first three years and 75 per cent exemption from entertainment taxes would be granted for two more years, he explained.

The exemption would be granted on the condition that the multiplexes reserve two screens exclusively for Kannada movies, the minister said. At present, the state has two multiplexes in Bangalore (Koramangala and Marathhalli) and one is coming up near Bidadi. When asked whether or not such a move would trigger a controversy as the Kannada cinema industry has been demanding re-introduction of service charges, he said the government would respond to their demands in the budget.