Rajasthan Circuit Goes Entertainment Tax Free
The Rajasthan state government has given 100% exemption on entertainment tax. This is a big boost to the film industry as Rajasthan was a huge growing circuit and now it will be even bigger as far as returns for distributors and exhibitors are concerned. The earlier tax rate in the state was 30%.
Basically a Dabanng did 7.50 crore nett lifetime business in the state but with the new rule a film doing similar business would amount to 9.75 crore now.
So far only Mumbai, Delhi/UP and East Punjab have given more than 1 crore nett business in one day for a single film and now Rajasthan is likely to the same very soon.
Uttar Pradesh has the highest rates of entertainment tax at 60% followed by Bihar at 50% and Mumbai city at 45%. While on the end of the scale is Punjab which is also exempt from entertainment tax.
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