Tax waiver for foreign films demanded

PEA demands CM Punjab issue a notification for the abolishment of 65 per cent entertainment tax on foreign films.

LAHORE: Cinema owners and film exhibitors are at loggerheads with the Punjab government once again on the issue of waiving 65 per cent entertainment tax on the screening of foreign films.

Cinema owners and exhibitors claim that they were assured by representatives of the Punjab government and Excise and Taxation Department officials around two-and-a-half months ago about the entertainment tax waiver. However, the concerned officials said no such decision was taken.

In a press conference at the Lahore Press Club this week, Pakistan Film Exhibitors Association Chairman Zoraiz Lashari demanded that Chief Minister (CM) Shahbaz Sharif issue a notification regarding the abolishment of 65 per cent entertainment tax on the screening of Indian and English films.

The CM has waived entertainment tax on the screening of Pakistani films for three years but film exhibitors and cinema owners have been campaigning that entertainment tax be abolished on foreign films  as well to support cinemas.

Lashari said that the notification hadn’t been issued by the Punjab government despite its pledges to do so. He also said that cinemas should be supported by the government.

Pakistan Cinema Management Association Chairman Qaiser Sanaullah Khan told The Express Tribune that a meeting was held two-and-a-half months ago at Alhamra which was attended by Punjab government representatives and officials.

He said that cinema owners and film exhibitors were assured that entertainment tax on the screening of foreign movies would be abolished. “The Excise Department’s additional director general, Punjab government spokesman Pervaiz Rasheed, Member of Provincial Assembly Khawaja Imran Nazir and others were present in that meeting. A summary of the proposal was formed and it had reached the table of CM but is not being approved. We are demanding that cinemas should be supported by the government and entertainment tax should be waived on foreign films as well,” he said.

Pakistani filmmaker Sangeeta believes that if foreign films helped generate a lot of business for cinema owners and exhibitors then they shouldn’t demand favours.

Excise and taxation department additional director general Akram Ashraf Gondal said that the department had issued the notification of abolishing entertainment tax on the screening of Lollywood films. He said that a decision had not been taken to waive entertainment tax on the screening of foreign films.

Published in The Express Tribune, September 25^th, 2010.