The decision was taken during the cabinet meeting chaired by Uttar Pradesh Chief Minister Akhilesh Yadav held here.
The cabinet approved a proposal to exempt "Bhaag Milkha Bhaag" from entertainment tax in two installments or for a maximum period of two months.
It also decided to exempt from tax children film "Two Little Indians" for a period of three months.
The Farhan Akhtar starrer is already tax free in Delhi, Mumbai, Goa and Haryana.