Budget 2012: Entertainment tax should be fully subsumed in the GST, says FICCI

FICCI in its pre-budget memorandum has given the following recommendations for film sector.

Government should consider the following suggestions for the film sector:

> Government should not levy both VAT and Service tax on Copyright services to avoid multiple taxation on the same item.

> Necessary equipment and hardware for film production must be allowed to be imported without the additional burden of customs duty.

> The Draft Constitution Amendment Bill, 2011 for GST allows the local bodies to levy a supplementary entertainment tax, over and above the GST. The additional tax would impose a significant burden on the film industry. To avoid complexities of taxation which is one of the main objectives of GST, it is recommended that Entertainment tax should be fully subsumed in the GST without creating a window for their levy at the local level.