Corpn gets Rs. 9.45 cr for tax forgone

The State government has allotted Rs. 9.45 crore to the city Corporation to make up for the losses it suffered after foregoing entertainment tax in the 2017-18 financial year, following the implementation of the Goods and Services Tax.

The State government has allocated Rs. 91.85 crore for all the local bodies in the State, for this purpose.

The local bodies had stopped collecting entertainment tax since July 2017, when GST was implemented.

Entertainment tax

The government calculated the amount liable to be provided to each local body by considering the entertainment tax collected in the financial year 2015-16 and adding 15% of that amount to it.

“In 2015, we had collected Rs. 8.21 crore in entertainment taxes, while in 2016, the amount was Rs. 8.51 crore. The tax increases every year considerably with the expansion of the city, and with the number of events happening here. For instance, the one-day international match at the Greenfield stadium on Thursday would have earned us a good sum in entertainment tax with the rate of 20% per ticket. But, if these are not taken into consideration in the allocations for the coming years, it might not provide us great benefits,” said a Corporation official.

Revenue from cinema theatres was one of the main sources of entertainment tax for the city Corporation.

With the renovation of most old theatres in the city and hike in ticket rates, and the opening of new multiplexes at the malls here, the local body stood to gain quite a considerable sum.

Highest for Kochi

The Kochi Corporation has got the highest compensation of Rs. 12.10 crore for entertainment tax revenue forgone.

Among the panchayats, there are panchayats like Koodaranji, which have got an allocation as small as Rs. 575, pointing at the lack of entertainment tax-generating events or institutions in its area.

Koodaranji panchayat allocated Rs. 575 citing lack of entertainment tax generation events

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