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Holiday over, Punjab cinema owners face 65% tax levy

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LAHORE:

Punjab’s cinema industry is set for a jolt at the start of the New Year and ticket prices are likely to shoot up.


After a self-imposed ban on screening Indian movies, which industry players removed just recently, cinema owners are now facing an Entertainment Duty tax from January 1, 2017.

In a notice to cinema owners, the Punjab Excise and Taxation department warned them of the impending liability – a 65% duty on admission tickets – that had so far been waived as a tax holiday for the last decade.

Cinema owners, which will be collecting the amount on behalf of the provincial government, are likely to pass on the increase in cost to consumers. This could result in a ticket price going up from Rs500 to Rs825 If cinema owners decide to pass on the entire burden onto the consumer.

Under the Entertainment Duty Act 1958, the Punjab government will collect this tax from January 1, 2017 after a decade-long hiatus that was meant to promote investment in the entertainment industry.

During this time, the culture of multiplexes picked up, translating to an almost 600% increase in the amount of screens in the country. From just 20-25 screens in Pakistan in 2006, the number now stands between 120-125.

The notice, which was sent on Thursday, said that the “entertainment industry is informed and being bounded to remain prepared for the routine payment of entertainment duty upon admission tickets … . In accordance, you (entertainment industry) are required to keep the concerned record ready … as the staff of this office is going to regularly check your Entertainment House (Cinema) from January 1, 2017”.

The cinema industry has had a good run since 2007. A government-led ban on screening Indian movies was lifted in 2007 following which billions poured into the sector, resulting in a six-fold increase in the number of screens. Punjab led the way with a 50% share in revenue followed by Karachi.

“This could be the final nail in the coffin as exhibitors have been struggling to survive recently, especially amid the absence of Indian content,” Super Cinema General Manager Khorem Gultasab told The Express Tribune.

Pakistan Film Exhibitors Association Chairman Zohair Lashari said tax breaks have helped strengthen a nascent industry, but fresh investments will now stop. “Billions of rupees have been invested in this industry, but all ongoing and fresh investments would be stalled now,” said Lashari, hoping that Punjab chief minister’s intervention would resolve cinema owners’ issue.

Meanwhile, Punjab Finance Minister Doctor Ayesha Ghaus Pasha said the government does not intend to cause harm to any industry. “We don’t want to cause a negative impact to any industry, but we have to collect taxes – especially from those sectors that have the ability to pay them,” Pasha told The Express Tribune.

She said the culture of extending tax breaks needed to stop in order to generate funds to finance different ongoing infrastructure projects. “I will meet the minister of excise and taxation and the exhibitors to resolve this issue,” Pasha added.

Published in The Express Tribune, December 30th, 2016.

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Is it not so expensive to pay a tax of 500 for a movie ticket...How much is the cost of a movie i multiplex?
 
Punjab government need to expand provincial tax collection and watching films in Pakistan is luxury anyway.
Taxing a struggling industry isnt something i would call smart

then why not give tax holiday to every industry, or entertainment is our Ist priority
Struggling sectors are given tax breaks its like you are begging for Lollywood to fail

In this case higher tax bracket should be introduced for foreign films so the funds raised can be used to support local film industry!
High tax should be for foreign films only
 
10 years are more then enough.
The industry is barely 5 years old and baboons are hell bent on destroying it so Bollywood reigns supreme once again just when our industry started to show improvement your party just made them handicapped
Instead of taxing foreign content so our industry gets better your party just added huge taxes so number of cinema goers further declines and new multiplexes too turn into shopping centres atleast in Punjab

This is just like the stupid high tax on IT sector which resulted in many companies relocating to Middle East and North America even the small Web Designing company i work for will relocate to Dubai in 1.5-2 years because of high tax (i am not going though)

Punjab government need to expand provincial tax collection and watching films in Pakistan is luxury anyway.
And to that instead of increasing direct taxes they increase tax on internet and food(packed milk)
 
Correction: These Indian film multiplexes that have sprung up recently across Pakistan are not cinemas.
Cinemas that existed in Pak in 80s, the single screen complex have been reducing in no. even during the introduction of indian films.

These indian film multiplexes import indian software from Dubai, UAE and stopped screeening of local films altogether apart from niche films like JPNA or Bin roye.

The indian film cineplexes are crying cos the indian distributor is not giving them their films. These indian film cineplexes shamelessly are hiding and even defending these indian actions and want to bring in inian crap when after 17 years Pak tv and cable network have stopped indian content altogether [Thanks to Pemra]

LOL Multiplexes are not a huge industry anyway. Sindh collects entertainment tax from these multiplexes, Punjab did'nt. Punjab is looking to broaden its tax net cos it can't borrow loans to finance the infrastructure projects forever.
 
Good. Apply this tax on Bollywood & Hollywood movie tickets & half on local movies.
Pakistani Cinema 2016: 30 Films Released, Business Witness Downfall!
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When it comes to Lollywood movies in 2016, it has been a fairly an average year for the Pakistani film industry. A staggering thirty films were released this year, one might have thought that this year was defiantly the year Pakistani movies would make a mark in the movie industry. Sadly, this is not what happened although massive powerhouses released their movies this year with a great cast.

2016 saw the release of movies such as Ho Mann Jahan, Maalik, Bachana, Jannan, Actor in Law, Mah e Mir, Lahore Sai Agay, Dobara Phir Sai, Zindagi Kitni Haseen Hai, 3 Bahadur: The Revenge of Baba Balaam, Sawaal 700 Crore Dollar Ka to name a few.









According to a survey released by Express.pk, only five films made any sort of dent in the film industry with the Fahad Mustafa, Mehwish Hayat and Om Puri’s Actor in Lawleading, followed by Jannan on second. The political thrillerMaalik on third, and Mah e Mir and Dobara Phir Sai on fourth and fifth respectively.

It is reported by Express.pk that the business in itself this year was comparatively low to the previous years with a twenty percent downfall in the film industry.


With 2017 just around the corner, one can definitely look forward to some more quality movies from the Pakistani film industry and perhaps even a few new fresh faces.

Stay tuned to Brandsynario for latest updates.

http://www.brandsynario.com/pakistani-cinema-2016-30-films-released-business-witness-downfall/
jo reh gaya hay wo bhi tor do?

zero on local movies.
So they can compete
 
Punjab government need to expand provincial tax collection

True that. But starting with the most obvious culprits would be better instead of levying 65% (crazy high rates) tax on a docile and struggling industry. Why not enforce tax collection from traders, real estate players etc first. These people are being given sweet sweet deals at the Fed level.

watching films in Pakistan is luxury anyway.

No its not. Film one of the few available sources of stress relief and entertainment for mostly middle/lower middle class folks.

In this case higher tax bracket should be introduced for foreign films so the funds raised can be used to support local film industry!

Doesn't work that way. The recent surge in investments in multiplexes started after foreign films were allowed to be screened. Let's face it: people here love foreign movies. And this love translates to investments. And this gives space and screen time to local movies.

Unless our film industry has matured enough, this move could kill this industry. And you do not want that. People are going to watch movies anyways. And we'll go back to the 90s with low quality B-grade local movies in few whorehouse type cinemas and foreign movies on tapes/CDs (now the internet).
 
No its not. Film one of the few available sources of stress relief and entertainment for mostly middle/lower middle class folks.

Ticket prices in Pakistan start from Rs 500 without tax, I don't think its for common folk yet.
 

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