This is the second time in the last five years that the government has reduced the tax. It was reduced first time in 2003 from 60 per cent to 30 per cent.
"Reduction in entertainment tax would benefit the general public," Chief Minister Sheila Dikshit told reporters after the cabinet meeting.
At present, there are 56 cinema halls in Delhi, out of which 17 are multiplexes and total number of screens is 99.
Entertainment tax from cinema sector is 17 per cent of the total entertainment tax collected per year.
The 17 multiplexes account for 80 per cent of the total entertainment tax collected from cinemas.
The collection of entertainment tax from cinemas including theatres and multiplexes has gone up from 23.65 crore in 2005-06 to Rs 29.89 crore in 2006-07 and Rs 38.07 crore in 2007-08.
Dikshit stated that a notification is being issued under the Delhi Entertainment and Betting Tax Act, 1996.
