Maharashtra government sets Rs 800 crore entertainment tax collection target

MUMBAI: Maharashtra government has set a target of Rs 800 crore entertainment tax collection for the year 2015-16.

The state government had set Rs 725 crore target for 2014-15 and the collection was Rs 725.81 crore, a government notification said. The areas with maximum collection targets for 2015-16 include Mumbai (Rs 110 crore), Mumbai suburbs (Rs 180 crore), Thane (Rs 115 crore) and Pune (Rs 153 crore).

The state cabinet recently decided to amend entertainment tax rules to allow for more effective recovery. The changed rules will empower district collectors to take action against businesses which avoid entertainment tax.

Outfits which do not pay the tax imposed, will have to pay a fine of Rs 50,000 or 10 per cent of the revenue which the state has foregone, whichever is higher.

Earlier, the offence had to be proved in court but this resulted in long delays for recovery. This was a key reason why the state government chose to empower district collectors.