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Haryana Cabinet clears Haryana Municipal Entertainment Duty Bill, 2017

The Haryana State cabinet on Tuesday approved the Haryana Municipal Entertainment Duty Bill, 2017 for levying entertainment duty in addition to the Goods and Services Tax (GST) levied on entertainment.

The duty will be collected by urban local bodies (ULB) and the funds received would be utilised for the development and betterment of civic amenities municipal areas.

It will be levied on entertainment points, outlets in municipal areas and will be uniform across the state. There will be a common list of exempted events or shows of entertainments.

Before the rollout of GST from 1st July 2017, 30% entertainment tax was levied on movie tickets. Consequently, the price of cinema tickets was reduced after the imposition of GST in the state. Before the introduction of GST, 30% entertainment tax was levied on movie tickets. However, after the imposition of GST from July 1, movie tickets less than Rs 100 attracted 18% GST while tickets over Rs 100 were levied 28% GST, bringing a relief for movie watchers.

The duty on public entertainment will be collected by urban municipal bodies. Once the Haryana Municipal Entertainment Duty Bill is passed in the next assembly session, the movie-goers will have to shell out more. Officials said funds received from entertainment duty would be utilised by municipalities on civic amenities in urban areas.

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