The Hush Post, Chandigarh: The Punjab Cabinet has paved the way for levy and collection of taxes on entertainments and amusements by all the Municipalities and Panchayats in the state.
The Punjab Entertainments & Amusements Taxes (Levy & Collection by Local Bodies) Ordinance, 2017 was approved by the Cabinet on Wednesday in a meeting chaired by Chief Minister Captain Amarinder Singh.
The Cabinet discussed and approved a proposal mooted by the local government department to levy nominal entertainment tax @ Rs 5 per DTH connection and Rs 2 per local cable connection per month by all the urban local bodies and gram panchayats.
The move, according to an official spokesperson, is expected to generate annual income of around Rs. 45-47 crore for the Urban Local Bodies and Panchayats of the state. Of this, Rs.9.60 crore would accrue on nearly 16 lac DTH connections and Rs.36.96 crore on 44 lac Cable connections across the state.
However, no entertainment tax has been proposed on cinemas, multiplexes, amusement parks and other similar places providing facilities for entertainment and amusements.
The move was necessitated by the introduction of GST by the centre from July 1, 2017, as a result of which entertainment tax being levied and collected by the state government through the Department of Excise and Taxations stood withdrawn. The power of levying entertainment tax has now been conferred on the panchayats and municipalities through amendment to entry 62 of the state list to the 7th schedule of the Constitution of India.