With the roll-out of the Goods and Service Tax (GST) regime from July 1, the tax waiver to films by the Haryana government will be a thing of past. However, if the state waives tax on a movie, it will not only lose its own share of the GST, but will also have to pay the Centre’s share of the tax.
Additional Chief Secretary, Sanjeev Kaushal said, “The moment GST regime comes into play, the film will not enjoy tax-free status”.
Until now, Haryana has been charging 30% entertainment tax on films, but under the GST regime, the films have been placed under the slab of 28%.
Read more: Haryana BJP allotted prime land at cheaper than market rates
Earlier, the Haryana government waived tax on movies like “Jattu Engineer” by Gurmeet Ram Rahim Singh and “Dangal” featuring Aamir Khan. It also exempted Dera Chief’s film “MSG – the Messenger of God” from entertainment tax”.
Kaushal added, “If a state government wants to exempt a film of the tax, it will not only lose its own share of 14 per cent, but it will have to pay the Centre’s share of 14 per cent from its exchequer”.
Previously, waiving tax to “Dangal” failed to prove beneficial for the public as the multiplex owners increased the basic fare of the tickets.
