The Assam Assembly on 13 August 2016 passed the Assam Amusements and Betting Tax (Amendment) Bill, 2016.
This bill will reduce the service charge of cinema tickets with an aim to boost to the local film industry. The government, however, raised the entertainment tax on cinema tickets by up to ten percentile points.
Provisions of the Bill
• The government proposed to make service charge 8 rupees per ticket for the halls without air conditioning system and 12 rupees for the halls with air conditioning system with back-up generator.
• The government also advised to increase the entertainment tax to 20 per cent from 15 per cent at present for entry charges between 5 rupees and 20 rupees per ticket.
• There will be no entertainment tax if the entry charge is 5 rupees or less.
• It raised the government tax to 30 percent on service charge from the existing 20 percent.
• It proposes to fix the service charge at a maximum of 12 rupees per ticket, which is as high as 40 rupees at present.
• A cess of 1 rupee will be levied on each ticket for creating a welfare fund for film and theatre sectors.
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What: Passed by Assam
When: 13 August 2016