Exemption of entertainment Taxes : The parameters must be documented 

Exemption of entertainment Taxes : The parameters must be documented 

Exemption of entertainment Taxes – Today Current Affairs

Context : recently the row on the disputed movie Kashmir Files is continuously on its zenith . Some states waived off entertainment tax to promote it and many states (Non BJP ruled states) did not waive off entertainment tax. Now this move has become the tool of dirty politics in India . BJP/ Rightists are continuously raising the demand for waiving off entertainment taxes in those states where BJP is not ruling . There must be some documented rules to give some relaxations or exemptions of entertainment taxes by the states . 

Today Current Affairs

Introduction : 

  • Entertainment tax is the type of taxes among different taxes levied on movie/ film ticket , ticket any shows/ exhibitions, any commercial shows etc. It is under the jurisdiction of the provincial government(State government). Before the implementation of the GST period , entertainment taxes played an important role for the income of the state . But after the implementation of GST, entertainment tax lost its importance and it is now nominal (approximately 9 to 15 %). Earlier it was approximately 40 to 60 % imposed by the state. Besides the entertainment taxes GST of 28 %. GST is under the jurisdiction of the center. If any movie is declared tax free. It does not mean that all types of taxes are waived off from that movie. Only entertainment tax is waived off from that movie . 
  • In comparison to GST , entertainment tax is nominal and it does not bring big effect on the price of movie tickets of a tax free movie . The price of a tax free movie in any multiplex is not below 200 rs . Therefore , the politics of no entertainment tax which has its nominal impact on the price of movie tickets is worthless . 

Is there any parameter for the relaxation of the entertainment tax : The Hindu Analysis

  • Generally this is the discretionary power of the state government to give any relaxation on entertainment taxes. Generally the government provide relation/ exemption from taxes to those exhibitions, movies and any commercial shows which promote our cultural heritage , our cultural value system and those moves which are based on patriotism, nationalism and for the national interest . Movies which are based on our history , prosperous cultural heritage , and prosperous arts must be promoted. But generally it has been observed , because of the political benefits, those movies are being tax free (Exemption of entertainment tax only ) which can create the conflicts in society or which can provoke communal riots in society or which can re expose the wounds of the past instead of healing the wound 
  • There must be some documented rules on behalf of which a movie and any commercial exhibitions, cultural exhibition , religious fair could be exempted from the tax. There must be a committee set up by the ministry of culture on state and central levels which would promote cultural exhibitions and the shows based on Indian culture . This committee should have the right to recommend the exemption of entertainment taxes on movies. 

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Conclusion 

As per the above analysis. Entertainment tax is nothing in comparison to the GST . If any commercial shows or any movies or any cultural exhibitions are really influenceable and inspirable for patriotism and Indian society , they must be exempted from all types of taxes (including GST) but the politics should not be done on these issues. If the rules regarding the exemption of the taxes would be documented and the decision regarding the exemption of taxes would be given by a prescribed committee, it would be more reliable , and authentic and it would prevent us from dirty politics.

Here we mention all information about Exemption of entertainment Taxes  Today Current Affairs.

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