MUMBAI: In an initiative to save the film trade from rampant piracy and multiple taxes at various levels, the government of Chattisgarh has exempted all cinema halls from payment of entertainment tax on tickets priced up to Rs 50.

The move will result in a significant rise in the final net collections of cinema halls despite the rate of admission being reduced to Rs 50.

Chattisgarh was among the first states to exempt cinemas from payment of taxes in towns with population up to 25, 000. This was further extended to towns of population up to one 100,000

State governments must realise that the cinema exhibition trade will die a miserable death if similar relief is not provided, since in today‘s times, films are available on satellite TV, cable TV, internet and pirated DVDs almost free that makes it tough for cinema halls to survive by paying entertainment and other taxes.