The Maharashtra government has decided to cut entertainment tax on live shows such as western music, dance programmes, exhibitions and fashion shows.

Speaking to reporters after a cabinet meeting in Mumbai on Wednesday, Chief Minister Sushilkumar Shinde said the entertainment tax of 39 per cent, plus 10 per cent surcharge, has now been reduced to 25 per cent.

The decision was taken after the government observed that most of the entertainment programmes had shifted outside Mumbai despite the city being the cultural capital of the state owing to the high entertainment tax.

The government now hopes to mobilise Rs 3 crore (Rs 300 million), instead of the current Rs 67 lakh (Rs 6.7 million) through live shows with the slash in the entertainment tax.