Information and broadcasting minister Ravi Shankar Prasad said the lower entertainment tax would, in fact, bring in more revenue for the state governments.
A meeting of all state information and finance ministers would be called soon to discuss the economics of this proposal, he said.
"We have decided to ask the state governments to cap the entertainment tax at 45 per cent, down from the present ceiling of 60 per cent," he said, after the state information ministers