Shell out ad fee, MC asks multiplexes

Ramkrishan Upadhyay

Tribune News Service

Chandigarh, July 12

The Chandigarh Municipal Corporation has served notices on all multiplexes and cinema halls in the city asking them to pay fee every week for advertisements shown during movie shows. Sources said this was the first time that the civic body had asked the multiplexes to pay the fee.

The notices have been issued under Section 30 of the Chandigarh Advertisement Control Order, 1954, which also prescribes fee for such advertisements. The management has been asked to pay Rs 4,800 per week for advertisements shown through slides and Rs 24,000 for advertisements shown through reels. The flat rates have been fixed for all cinema owners. The owners have been told to pay the fee from July 1 onwards along with 18 per cent GST to the MC.

In case the owners fail to pay the amount, penalty will be imposed on them and legal action as per the Act will also be initiated against them. The sources said the rates had been fixed per screen. The sources said there were 30 screens in cinema halls in the city and the MC was expected to earn a huge amount through the fee. The rates have been fixed on the recommendations of a committee formed by MC Commissioner KK Yadav.

Yadav had formed a nine-member committee of officers to frame a new advertisement policy, for revision of the advertisement tax and fee, entertainment tax on theatres and multiplexes and fee for advertisement displayed in cinema halls and multiplexes.

Owners cry foul, term it unjustified

Officials of multiplexes said the  fee was unjustified and would put an extra burden on movie-goers. A cinema  hall owner said keeping  the same fee for cinema  halls  and multiplexes  was not right. He said the traditional  cinema  halls were running in losses and asking them to pay a huge  fee would ruin their  business further.