Updated on Friday, July 03, 2009, 23:39 IST

New Delhi, July 03: Keeping in view the slowdown in the cinema industry, the Municipal Corporation of Delhi will review the policy of increasing tax on city theatres.

Mayor Kanwar Sain today said a proposal sent to the Delhi government about five years back envisaged increasing the maximum leviable tax by MCD on cinema theatres from Rs 7 to Rs 10 per show to Rs 1000 per show.

However, the upper limit had been envisaged for any future increase, not necessarily implying that it would be increased to Rs 1000 per show, he noted.

The Mayor said the proposal needs to be reviewed in the present circumstances because the cinema industry is badly hit by cable TV, satellite TV and piracy.

"The occupancy in theatres has dropped considerably and they are merely surviving on advertisement revenues and canteen sales," he said noting that MCD and Delhi government are already taking entertainment tax, advertisement tax and property tax from the theatres.

Bureau Report