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

Mumbai's moviegoers and patrons of the performing arts may soon face significantly higher ticket prices following the Brihanmumbai Municipal Corporation's (BMC) proposal for a staggering 570% increase in entertainment tax rates. The civic body aims to boost its revenue, which currently stands at Rs 360 crore annually, to around Rs 500-550 crore if the revised rates are implemented.

The proposed hike includes a massive Rs 400 increase in ticket tax for air-conditioned cinema halls and multiplexes, bringing the per-ticket tax from Rs 60 to Rs 400 - a 570% jump. Non-air-conditioned theaters would see their rates soar from Rs 45 to Rs 200, marking a 400% increase. Performing arts shows, including concerts and plays, would witness a tax hike from Rs 50 to Rs 100, while other miscellaneous entertainment shows would see rates rise from Rs 30 to Rs 75.

The proposal also introduces a new tax rate of Rs 90 per ticket for mini theaters and video exhibition venues. To support regional industry and culture, 100% tax exemption will be provided to cinema halls, multiplexes, and theaters showcasing Marathi and Gujarati cinema, plays, and concerts. Additionally, if exhibition hall and performing center owners clear the tax rates within the first five days of a month, they will receive a 6% tax rebate.

The BMC had initially proposed these tax rate hikes in February 2024, when the city lacked an elected government and functioned under a state-appointed administrator. The revised tax rates would come into effect during the 2027-2028 financial year, with the BMC anticipating a 50% revenue hike from an estimated Rs 500-550 crore annually.