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The BMC proposed a major hike in entertainment tax rates for movie tickets

ICICIdirect Research 24 Sep 2026 DISCLAIMER

News: As per media reports, The Brihanmumbai Municipal Corporation (BMC) proposed a major hike in entertainment tax rates for movie tickets, plays, and live shows. Under the new proposal, air-conditioned cinemas and multiplexes face a 570% tax increase, moving from ₹60 to ₹400 per show. Non-AC cinema halls would see their per-show tax rise by 400%, increasing from ₹45 to ₹200. Furthermore, taxes for performing arts, such as live concerts and plays, are set to double from ₹50 to ₹100 per show, while a fresh levy of ₹90 per show has been introduced for mini-theatres and video screening venues. The revised tax structure (likely from FY28) is subject to approval by the Maharashtra State Government's Urban Development Department.

View: We note that while the increase is steep on percentage basis, on a per ticket basis, likely impact will be ₹2-3 (assuming 100-200 seater screen) which is ~1%. Thus, this is an insignificant impact for the multiplexes

Impact: Neutral

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