East Corpn to hike advertisement tax

Taxes have not been revised in 5 decades

Aimed at increasing its revenue, the East Delhi Municipal Corporation has decided to increase theatre and advertisement tax.

A proposal regarding the same was passed by the standing committee of the corporation last week, arguing that the taxes have not been revised over the last five decades, despite the fact that the business in the sector has grown manifold.

The corporation has proposed to raise both advertisement tax and the theatre tax - levied on cinema halls, theatres showing plays, and concerts apart from holding carnivals and fests.

“ As per the proposal, cinema halls and multiplexes would have to pay tax to the tune of Rs 1,000 per show. Similarly theatres allowing drama and concerts would also have to pay a similar amount  per show, Holding a carnival or fete will attract a tax of Rs 5,000 per event,” a corporation official said.

“Similarly, advertisement tax would be hiked between Rs 1,000 to Rs 2,800 depending upon the nature and place of the advertisement,” the official added.

Currently, cinema halls and theatres pay only Rs 7 per show as tax. Similarly, the rate of advertisement tax varies between Rs 18 to Rs 240.

Officials said the hike in tax rate is a necessity as it has never been revised since the Delhi Municipal Corporation Act was legislated in 1957.

“The fees and taxes under the various schedules in the DMC Act, 1957 have not been revised till date. However, many theatres in Delhi have already undergone modernisation and conceptual change. Many of them have been converted into multiplexes.

The price of a movie ticket was as low as Re 1 in yesteryears. Now a cinema ticket come at a price of more than Rs 150. The rate of tickets per show have increased by 150 percent, but the theatre tax remains stagnant since 1957,” the corporation official said.

However, the tax revision is subject to clearance from the Delhi government. “The proposal needs to be cleared from the Delhi government as the DMC Act would be required to be amended accordingly,” EDMC commissioner S S Yadav said.

It would be interesting to note that a similar proposal was sent for approval to the Delhi government by the erstwhile MCD in 2003. However, the proposal is still pending.