Budget 2020: Entertainment sector once again urges for rationalization of GST rates
Online players in the entertainment space also expect the government to boost the digital ecosystem to get rural India placed on the digital map.
The entertainment industry may seem to be on a blockbuster run.
For films, 2019 turned out to be the strongest year so far, and this year as well, the movie business has started on a profitable note. On the digital front, consumers even from smaller towns are lapping up online content, giving digital entertainment companies a bigger market to cater to.
Yet, there are aspects that needs attention for better growth and players in the entertainment sector list down their expectations from Budget 2020.
First up is the demand for uniform taxation. Talking to Moneycontrol, Rahul Puri, MD, Mukta Arts said, “Uniform taxation would be most helpful and transparent. The GST rates on tickets should be the same as the distributors rate. This would be a fair equation for all."
At present, there is dual taxation on tickets. For tickets below Rs 100, the GST rate is 12 percent, and 18 percent for tickets above Rs 100. Also, distributors have to pay a GST of 12 percent when they distribute movies to exhibitors.
"An input credit on F&B which is currently being absorbed would also be welcome,” Puri added.
Along with uniform taxes, Puri also hopes for a tax holiday on the building of new screens especially in smaller towns and cities. “In a recessionary climate, this could well be a move to boost demand and creation of jobs,” he added.
Read More : Money Control