In a major relief to the cinema exhibitors, UP government has allowed cinema hall owners to levy maintenance charge on each ticket sold from the box office. |
The hall owners have also been allowed to levy this charge even if the feature film has been exempted from the entertainment tax. |
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The government has set a cap of Rs 1.50 per ticket to be charged by the cinema hall owners as maintenance charge. Besides this, the cinema halls offering AC and air cooled facilities have been allowed to further charge 60 paise and 25 paise per ticket, respectively, as maintenance charges. |
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The cinema hall owners would be allowed to use the money collected, for the maintenance, renovation and up gradation of the hall. |
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``With this relief we have tried to address the long standing grievance of the cinema exhibitors that the successive governments in UP have ignored their interest and their problems following the competition by the rising number of multiplexes and mushrooming of other modern means of entertainment'', said secretary taxation, and stamps registration Bachittar Singh. |
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He said the government would also offer further assistance to the exhibitors for the modernization of the halls like the new screen and replacement of chairs. As per the package worked out by the entertainment tax department, half of the cost of modernization would be given by the government as subsidy to the exhibitors, he added. |
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``The government is also keen for the revival of the cinema halls lying closed for years. The owners of such halls interested in reopening the hall would be given exemption from the taxes for the five years, provided the minimum number of seats in the hall were 300'', said Bachittar Singh. |
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If the multiplex are constructed at the site of the old cinema halls then the government would extend subsidy to such projects for the next five years from the date of commissioning of the new project, said Singh. |
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He added presently there were 17 multiplexes in the state and they were given a subsidy of Rs 30 crore in last fiscal 2005-06. |
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