In what it calls an effort to infuse a new lease of life into the multiplex business, in the backdrop of “archaic laws”  and a “highly-burdensome” tax regime, industry body FICCI has proposed a ten-point revival package for the industry.

The most significant among the recommendations from FICCI to the government are introduction of a uniform 16 per cent entertainment tax regime across India and standardisation of cinema regulations under a Central Uniform Cinema Code to be applicable across the country.

FICCI’s revival package comes with the pointer that the multiplex industry contributes 70 per cent of all film exhibition revenues in the country. The suggestions also include removal of all pricing restrictions, removal of restriction on number of film shows and freedom to operate any number of shows between 8 am and 1.30 am, simplification and standardisation of all laws governing the sector, licensing under a “single-window” clearance concept, and permission for computerised ticketing and digital distribution and exhibition in all states.

While suggesting a uniform 16 per cent entertainment tax across India, FICCI says it should be done in phases over the next three years to mitigate concerns of adverse revenue impact on state finances.

Highest tax regime
Pointing to the tax woes of the industry, FICCI said that India has the dubious distinction of being the highest “entertainment taxed” country in the world.