He said the multiplex industry has been asking the government for 12 per cent or in the worst case scenario 18 per cent rate under GST. This not only helps the industry to create world class content but also better infrastructure. According to him, tax slabs on the cinema exhibition industry in several countries as the US, China are in single digits only. “Raising it to 28 per cent is extremely discouraging,” Bijli added. “As they are not taxed heavily, they plough back whatever cash they generate to create better infrastructure,” he added. “We are clubbed with the highest category, which the government wants to discourage like luxury goods and casinos etc. Terming the decision as “unfortunate” and “discouraging” Bijli said that he was expecting a lesser tax slab for the industry of around 12 per cent or 18 per cent and will make representation before the authorities to lower it. Overall, the benefit would have accrued to the government,” he said. The industry players will be taking up the issue with concerned authorities and seek reclassification from 28 per cent to 18 per cent, Bijli added. 2017-05-24T19:03:49+00:00″>
Published:May 24, 2017 7:03 pm
Terming the decision as “unfortunate” and “discouraging” Bijli said that he was expecting a lesser tax slab for the industry of around 12 per cent or 18 per cent (File Photo)
The government’s decision to put cinema exhibition industry in the highest tax slab of 28 per cent under GST regime along with luxury items will affect quality of contents and growth of multiplex industry, said PVR Chairman and MD Ajay Bijli. Cinema is the basic form of entertainment for masses of this country,” Bijli told PTI. For all the latest Entertainment News, download Indian Express App now “In the long run the tax collection would only have been improved because this would have encouraged us (the whole industry) to open more screens and also improve the quality of the content. According to reports India has 13,900 single screens and over 2,050 multi-screen in 2016.