Policy for multiplexes and cinema halls

Bhopal, Apr 17: With a view to encouraging construction of multiplexes and converting existing cinema houses to multiplexes, the Madhya Pradesh government today decided to grant exemption in entertainment tax and electricity duty on multiplexes. Exemption would be granted from the date of the first screening of a film in any of the cinema houses in a multiplex with 100 per cent exemption in the first, second and third years, 75 per cent in the fourth and 50 per cent in the fifth.

No electricity duty would be charged for five years. This was decided by the cabinet at a meeting presided over by Chief Minister Shivraj Singh Chouhan here. The government endorsed the new policy for construction of multiplexes and single-screen cinema houses and improvement of existing cinema houses. The policy would be effective from April 1, 2008. Eligibility for tax exemption included facility for simultaneous screening of two films, investment of at least Rs 2 crore and minimum 500 seating capacity, an official release said.

The cabinet also sanctioned creation of additional posts of officers and inspectors in the Commercial Tax Department and to forward loan proposals of Rs 1,145.90 crore to the Asian Development Bank for the third phase of road project. The cabinet decided to forward loan proposals of Rs 1145.90 crore for the third phase of Madhya Pradesh Road Project to the Asian Development Bank through the central government and to initiate action for preparing detailed project report of the roads selected under it. Construction of 16 roads with a length of 1637 km is proposed in the third phase. Meanwhile, the cabinet entrusted the responsibility for redesigning and maintaining websites of various departments and undertaking of the state government to the Madhya Pradesh Electronics Development Corporation in order to bring in uniformity, the release added.