The Colombo Municipal Council (CMC) there is an unpaid tax arrears of Rs. 49 million due from cinema halls located in the CMC jurisdiction.
The amount is an arrears of Entertainment Tax from 2019 – 2023, they said.
According to the Entertainment Tax Ordinance, every cinema hall is required to pay 08% of their daily earnings as Entertainment Tax to the relevant Urban Council or Municipal Council in their respective areas.
In the CMC jurisdiction there are 46 cinema halls. However, only 36 are functioning at the present after 10 being closed down during the Covid-19 pandemic.
Out of these 36 cinema halls, 25 of them have not paid the Entertainment Tax, says a senior official at the CMC Revenue Unit.
Although measures have been initiated to recover this tax arrears, it will not be obtained by force since the cinema industry was deeply affected during the pandemic, the official added.
Instead, it will be secured through a relief system, he further noted.