Bihar government hikes entertainment tax State expects to earn Rs 40 million

Anand Mohan Sahay in Patna

The Bihar government has decided to hike the entertainment tax on cinema by 20 per cent.

This decision was taken to increase the mobilisation of revenue from internal resources. "The decision to hike the entertainment tax on cinema by 20 per cent in the state was taken by a cabinet presided by chief minister Rabri Devi," official sources said Friday.

A state department official told rediff.com that the last hike on entertainment tax on cinema was made in 1991. "Since then, the population in the towns [of Bihar] have increased by 20 per cent. The state is expected to earn an additional revenue of Rs 40 million per year with this tax hike."

According to Hindi film industry people, this hike will affect their business, which is already facing trouble due to the cable television network.