Entertainment tax to be cut: Reddy

The government is committed to the growth of the entertainment industry and will take immediate steps to cut entertainment tax, Jaipal Reddy, Union Minister of Information and Broadcasting said addressing the annual FICCI Frames annual event in Mumbai on Monday.

"We are aware that the industry is facing a burden of even 80 to 100 per cent tax in some north Indian states. This will definitely be cut down to a moderate levels," the minister said.

"We are not in a position to completely waive off the tax at this point," he added

Meanwhile, Zee Telefilms Chairman Subhash Chandra, in his speech at the conference, raised concerns about entertainment tax in India being the highest in the world.

He said that the government must take immediate steps to bring it down. The Zee chairman urged the government to create a level playing field for Indian media companies.

Noted filmmaker Yash Chopra also called for a rationalization of the tax structure for the industry to register bigger growth.

"While the tax is low in the southern states, it is very high in North India. This hinders growth," said Chopra.

In response to the concerns raised by the industry that the fringe benefit tax will lead to an increase in expenditure as all travel and food expenses will be taxed; the minister assured that he would discuss the issues of fringe benefit tax with the finance minister.

The minister also said that a regulator for the information and broadcasting sector would be set up to monitor the content and address the concerns of the industry.

The Bill for setting up a regulator will be introduced in the monsoon session of Parliament, Reddy said.