Nagpur: Cash-starved Nagpur Municipal Corporation (NMC) has once again initiated efforts to secure a Rs748.62 crore grant from the state govt to compensate for the revenue lost due to suspension of entertainment tax collection. The tax was suspended after GST implementation in 2017.Around three years ago, the then municipal commissioner Abhijeet Chaudhari had written letters to the govt seeking the grant. However, no concrete assurance was received. NMC has started the process for sending a fresh proposal to the govt as temporary exemption from entertainment tax collection ended on Sept 30.Before GST came into force, a special department under the district collector’s office collected entertainment tax. On May 29, 2017, the state govt amended the Maharashtra Entertainment Duty Act and transferred the power to collect the tax to local bodies. Subsequently, NMC started collecting entertainment tax from single-screen cinemas, multiplexes, cable connection operators and programmes organised at auditoriums and cultural halls, including ticketed social and cultural events.With implementation of GST from July 1, 2017, the state granted a temporary exemption from entertainment tax under Section 3 of the Maharashtra Entertainment Duty Act.The suspension resulted in a substantial loss of revenue for the civic body. The exemption, introduced in 2017, was extended by the state cabinet on May 3, 2023, under then chief minister Eknath Shinde, up to Sept 30, 2026.Before NMC, the district collectorate earned Rs20.24 crore from entertainment tax in 2015-16 and Rs24.01 crore in 2016-17. Had the collection continued, the annual revenue was projected to rise steadily over the years. As per the civic administration’s estimates, the potential annual revenue loss has risen to Rs148.80 crore in 2026-27.“Entertainment tax was a major source of revenue for NMC. The grant, if provided, would bring financial relief for the civic body and help overcome fund constraints for development works,” said Milind Meshram, officiating additional municipal commissioner.Year | Entertainment tax revenue2015-16 — Rs20.24 crore2016-17 — Rs24.01 crore2017-18 — Rs28.84 crore2018-19 — Rs34.61 crore2019-20 — Rs41.53 crore2020-21 — Rs49.83 crore2021-22 — Rs59.80 crore2022-23 — Rs71.76 crore2023-24 — Rs86.11 crore2024-25 — Rs103.34 crore2025-26 — Rs124.00 crore2026-27 — Rs148.80 crore
