With a view to infuse a new lease of life in multiplex industry currently burdened with high taxes and government regulation, industry body FICCI has suggested a 10-point revival package including a cap of 16% in entertainment tax across the country.
"The archaic laws governing regulation of cinema and a highly burdensome tax regime are posing a serious challenge to the multiplex industry which contributes 70% of all film revenues, leading to closure of cinema theatres and shutting out investment," a FICCI statement said.
The chamber sought standardisation and modernisation of cinema regulations under a Central Uniform Cinema Code to be applicable across the country. It also suggested removal of restriction on pricing and number of shows.
It said licensing should be under a 'single-window' clearance concept and digital distribution should be specifically permitted.
With regard to entertainment tax, the chamber said, "to mitigate concerns of adverse revenue impact on state finances, reduction may be done in phases over next three years".
India is among the highly under-screened countries in the world with only about 12 screens per million in comparison to 117 screens per million in the US, it said.
The major areas of concern for the multiplex industry include legal and regulatory issues and high entertainment tax, the chamber added.
"The archaic laws governing regulation of cinema and a highly burdensome tax regime are posing a serious challenge to the multiplex industry which contributes 70% of all film revenues, leading to closure of cinema theatres and shutting out investment," a FICCI statement said.
The chamber sought standardisation and modernisation of cinema regulations under a Central Uniform Cinema Code to be applicable across the country. It also suggested removal of restriction on pricing and number of shows.
It said licensing should be under a 'single-window' clearance concept and digital distribution should be specifically permitted.
With regard to entertainment tax, the chamber said, "to mitigate concerns of adverse revenue impact on state finances, reduction may be done in phases over next three years".
India is among the highly under-screened countries in the world with only about 12 screens per million in comparison to 117 screens per million in the US, it said.
The major areas of concern for the multiplex industry include legal and regulatory issues and high entertainment tax, the chamber added.
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