This would result in a rise in ticket rates for Indian PremierLeague (IPL) and 20-20 matches played on the outskirts of cities like Nagpur.
Commercial entertainment events and limited-over cricket matches organised in rural areas will be charged 10% entertainment duty. Earlier, they were exempted from the tax.
This would result in a rise in ticket rates for Indian PremierLeague (IPL) and 20-20 matches played on the outskirts of cities like Nagpur.
Limited-over cricket matches played on the Vidarbha Cricket Association’s ground on the outskirts of Nagpur city had so far been entertainment duty-free.
Ranji and test cricket matches, folk dance and musical shows, and all other sports events continue to be entertainment duty-free.
The cabinet has also decided to levy tax on the entry fee instead of the earlier practice of levying it on the ticket’s gross value.
“Though the existing duty on such events in Mumbai is 25%, it goes down to 20% in other municipal corporations and 15% in Grade A, B, C, and D municipal councils. The events in the rest of the rural areas were duty-free so far but will now attract a duty of 10%,” said Swadhin Kshatriya, principal secretary, revenue. Live musical and dance concerts and film shows in rural areas will also be affected by the decision.
Chief minister Prithviraj Chavan said that revenue from entertainment tax levied on IPL or 20-20 matches played on the VCA ground in Nagpur could be almost Rs50 lakh. “As per our affidavit in the high court in response to a PIL filed by Shiv Sena MLA Subhash Desai, we are levying the tax on events even in rural areas,” he said.
The Mumbai Entertainment Duty Act, 1923, had so far exempted entertainment activities organised in rural areas from the duty. The decision taken by the cabinet on Tuesday has brought the entire state under the gamut of the tax.
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