Information and broadcasting (I&B) minister Ravi Shankar Prasad
has said that a meeting of all state information and finance ministers
would be called soon to discuss the economics of this proposal.
He explained that lower entertainment tax would, in fact, bring
in more revenue for the states.
"We have decided to ask the states to cap the entertainment
tax at 45 per cent, down from the present ceiling of 60 per cent,"
he said, after the state information ministers' meeting in Delhi.
However, Prasad clarified that this was a state subject and the
Centre could only make a suggestion. It was up to the states to
implement them, he stated.
Currently, the Bihar government charges 110 per cent entertainment
tax, it's much less in West Bengal at 30 per cent, in Uttar Pradesh
at 60 per cent and in Tamil Nadu at 25 per cent. States like Gujarat,
Haryana, Jammu and Kashmir, Madhya Pradesh and Punjab have a tax
rate of 50 per cent each, Prasad said.
Media reports also quoted Prasad as saying that the Centre has
decided to ensure enforcement of anti-piracy measures, sensitise
the police and appoint an anti-piracy nodal officer in each state,
to curb piracy.