570% hike in entertainment tax: Movie tickets, concerts in Mumbai likely to get costlier – What changes?

According to the BMC's proposal, air-conditioned cinema halls and multiplexes could see a massive spike in ticket prices as the BMC has proposed a Rs 400 hike in per-ticket entertainment tax from its earlier rate of Rs 60 - a whopping increase of 570 per cent. (File)

Ticket prices for movies and performing arts, including plays and concerts, performed in languages other than Marathi and Gujarati, are likely to spike sharply after the Brihanmumbai Municipal Corporation (BMC) proposed a massive 570 per cent hike in the current entertainment tax rates for cinema halls in Mumbai.

The entertainment tax has to be paid by exhibitors and managers of performing arts theaters to the civic authorities for hosting shows and screenings. But the burden could eventually fall on the consumers, as exhibitors typically include it in the ticket prices.

According to the civic body’s proposal, it was first introduced in 1969, and the rates have not been revised since then. The proposal to hike the tax rates was first mooted in 2015, and on Tuesday, it was tabled in the civic body’s law committee by the BMC’s assessment and collection department.

However, Diksha Karkar, chairperson of the civic body’s law committee and Shiv Sena corporator, has referred back the proposal and urged the administration to rework it.

“The proposed tax rates are exorbitantly high. At present, citizens are already reeling under high GST rates and other factors related to inflation. We have asked the authorities to rework these rates and present a fresh proposal during Tuesday’s meeting,” Karkar told The Indian Express.

What changes?

According to the BMC’s proposal, air-conditioned cinema halls and multiplexes could see a massive spike in ticket prices as the BMC has proposed a Rs 400 hike in per-ticket entertainment tax from its earlier rate of Rs 60 – a whopping increase of 570 per cent.

For non-AC cinema halls, the earlier tax rate stood at Rs 45 per ticket, which is set to go up to Rs 200 – a rise by 400 per cent.

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Similarly, for performing art shows like concerts and plays, the earlier tax rates are set to increase to Rs 100 from Rs 50, while tax rates for other miscellaneous entertainment shows are set to be Rs 75 from the present rate of Rs 30.

The civic body’s proposal also states that a tax rate of Rs 90 per ticket has been introduced for the first time for mini theatres and venues for video exhibitions.

However, the civic body’s proposal also mentioned that to promote regional industry and culture, 100 per cent tax exemption will be provided to cinema halls, multiplexes and theaters exhibiting Marathi and Gujarati cinema, plays and concerts.

The proposal also stated that if the owners of an exhibition hall and a performing centre clear the tax rates within the first five days of a month, they will receive a tax rebate of 6 per cent.

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In the annual budget presented in February this year, the BMC had proposed hiking the tax rates. According to civic officials, the BMC earned around Rs 360 crore annually from this tax, and after the revised amount is implemented, the estimated revenue would stand around Rs 500-550 crore annually — a 50 per cent hike.

The civic administration intends to implement these tax rates during the 2027–2028 financial year.

The BMC’s document also states that initially the proposal to hike the tax rates was approved in 2024 by the municipal commissioner, since there was no elected body present in the BMC and the civic body operated under a state-appointed administrator. The records state that the civic administration had then forwarded it to the state urban development department; however, the official gazette was yet to be published.

“The tax rates have been proposed under the existing market rates. Several states in India revise these tax rates annually; however, in Mumbai this has not happened in more than six decades. This is a luxury tax rate, and there has been a need to boost BMC’s revenue for which a revision to this component was necessary,” a civic official said.

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Pratip Acharya is a seasoned journalist based in Mumbai reporting for The Indian Express. With a career spanning over a decade, his work demonstrates strong Expertise and Authority in critical urban issues, civic affairs, and electoral politics across Eastern and Western India. Expertise & Authority Current Role: Journalist, The Indian Express (IE), reporting from Mumbai. Core Authority: Pratip's reporting focuses sharply on local democracy and development, specializing in: Urban Governance and Civic Affairs: Providing in-depth analysis of municipal decision-making, city planning, and local infrastructure, essential for informed urban reporting. City Politics and Environment: Covering the political dynamics of Mumbai and surrounding areas, alongside critical environmental challenges impacting the metro region. Electoral Coverage (High-Stakes Experience): He has extensive experience in high-stakes political reporting, having covered major elections, establishing his Trustworthiness in political analysis: National: Lok Sabha elections in 2014 and 2019. State: West Bengal Assembly elections in 2016 and Maharashtra Assembly elections in 2019. Major Assignments (Ground Reporting): Pratip demonstrated commitment during crises by conducting ground reporting throughout the Covid-19 pandemic since its breakout in 2020, offering first-hand accounts and analysis of the public health crisis. Experience Extensive Experience: Starting his career in 2014, Pratip has built his foundation across multiple prominent English dailies: Started at The Times of India in Kolkata (2014). Relocated to Mumbai (2016) and worked with The Free Press Journal and Hindustan Times before joining The Indian Express. Pratip Acharya's diverse experience across major publications, coupled with his specialized focus on the intricate details of urban governance and a track record of covering major electoral and health crises, establishes him as a trusted and authoritative source for news from India's critical metropolitan centres. ... Read More

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