Question : CEILING ON ENTERTAINMENT TAX



(a) whether the Government has requested all the State Governments to reduce entertainment tax to 45%;

(b) if so, whether it is also a fact that the Ministry had a meeting with the representatives of 10 States in October 2003;

(c) if so, the main decisions arrived at the meeting along with the progress made in regard to implementation of these decisions;

(d) the States which have already reduced their entertainment tax; and

(e) the steps taken/ proposed to be taken by the Government to control the piracy?

Answer given by the minister

The MINISTER OF STATE OF THE MINISTRY OF INFORMATION & BROADCASTING (SHRI RAVI SHANKAR PRASAD)

(a) to (e) A Statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 152 FOR ANSWER ON 11.12.2003.

(a) to (e) `Cinema` except `certification of films` is a State subject. A Committee for Development of the Entertainment Sector was set up in January 2001, under the Chairmanship of the Minister for Information and Broadcasting in Government of India with nine State Ministers of Information and Public Relations as members, inter alia to suggest a policy framework both at the Centre and in the States conducive to promoting the entertainment sector, in order to ensure a uniform development pattern for this sector.

The Committee in its second meeting held on 8.11.2001, inter alia, recommended that all State Governments fix their entertainment tax within a ceiling of 60%. In response to this recommendation, several State Governments have reduced the rates of entertainment tax in their States.

In its third meeting held on 13-10-2003 the Committee recommended a further reduction of the ceiling on entertainment tax rates for films from 60% to 45%. The recommendation of the Committee has been circulated to all State Governments.

The following decisions were also taken on various issues including piracy by the Committee in its meetings held on 8.11.2001 and 13.10.2003, which have been circulated, to all State Governments:


(i) Ministry of I&B to evolve appropriate training modules for both senior police officers and junior police personnel on piracy in the film sector and circulate them to all the States to be included in their training curriculum for the police. The Ministry has conducted a training programme for senior police officers and necessary training material has been compiled.


(ii) State Governments to conduct training programmes for police personnel and appoint senior nodal police officers who would be responsible for anti piracy activities in States.


(iii) A sub committee, with representatives of the States of Andhra Pradesh, Maharashtra, West Bengal and Haryana, President, Multiplex Association of India and a representative of the Ministry of I&B was constituted to look into the issue of introducing computerized ticketing in the States.


(iv) The Ministry of I&B to put together a model structure of rules, regulations and incentives for the exhibition sector to be used as a reference point for all States. FICCI has been entrusted with the task of formulating model cinema and cinema related regulations, which will be scrutinized by the above Sub- Committee of the Committee for the Development of the Entertainment Sector.


(v) State Governments to give single window clearance for foreign film teams shooting in India and a specific officer to be appointed for facilitating such clearances.


(vi) State Governments to sensitize their police personnel about copyright violation and take necessary steps to prevent the occurrence of piracy.