Indian cinemas and movie producers have welcomed the move to lower the goods and services tax (GST) rates for film tickets.
The Indian government reduced the GST on movie tickets costing over RS100 ($1.43/€1.25/£1.13) to 18 per cent from 28 per cent on Saturday.
Cheaper tickets will see a drop in the rate from 18 per cent to 12 per cent.
According to the Indian Economic Times newspaper, Siddharth Roy Kapur, president of industry apex body The Film & Television Producers Guild of India, called it a “progressive step” that will attract investments in both exhibition infrastructure and creative development.
The cinema and film industry has reportedly been seeking such a reduction since last year when cinema tickets were added to the highest 28 per cent section of the GST.
Alok Tandon, chief executive at multiplex operator INOX Leisure, said: “This will give an impetus to the India film industry. This will ensure penetration of multiplexes more in smaller towns and the real Bharat.”
IMAGE: Tumisu
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