In the coming days, ticket prices for movies, live football, and cricket games in Bengaluru are likely to go up.
The new Bill, which replaces the Karnataka Municipal Act, is aimed to improve BBMP financially by empowering the local body to charge entertainment tax, according to a report by Bangalore Mirror. Similar laws are already in place in states like Kerala, Punjab and Tamil Nadu.
A draft legislative commitee has been set up for studying the BBMP Bill, who met on Tuesday to create new avenues for tax collection for the local body. The committee is set to submit a final report in November later this year and sit for discussion during the winter session in December.
The idea of entertainment tax was backed by Centre, directing all states to enable tax collection for local bodies, in addition to the GST charges, which is shared between the state and central governments.
A participant who attended the meeting told the publication that the tax could be as little as 0.5 or 1 per cent but insisted that it was important for the BBMP because under the GST laws the revenue from the outdoor advertisements no longer goes to BBMP’s exchequer. The new tax is estimated to generate revenue of Rs 100 to 200 crore.
Civil activist Srinivas Alavilli criticised the move and told the publication that instead of the government making BBMP financially stronger they are putting the onus on the public. Cinema ticket prices are already high in the city, he added.
In addition to the entertainment tax, BBMP is also eyeing the Rs 700 crore professional tax, which currently goes to the state government, in order to compensate for the Rs 500-600 crore loss in advertisements revenue.