1. Introduction

Under the powers vested in Parliament by Article 148 of the Constitution for imposing taxes, and the power to delegate such authority to another body by law, the Entertainment Tax Ordinance has delegated legal authority to local authorities to impose and collect an amount equal to a certain percentage of the ticket fee charged for admitting persons to any entertainment held within the local authority area as Entertainment Tax. The Entertainment Tax decided and imposed by a local authority under this ordinance comes into effect from the date approved by the Minister and published in the Gazette.

Note:

• When separate fees are charged for admission to the place where an entertainment is held and for the entertainment inside, each such charge shall be subject to Entertainment Tax.
• Even when fees are charged online, electronically, or in any other manner without printed tickets for an entertainment, the Entertainment Tax shall be paid at the rate corresponding to the amount collected.
• If a fee is charged for entertainment through machines operated by oneself or by others, or through any other activity, such fee shall also be subject to Entertainment Tax.

2. Legal Authority

Entertainment Tax Ordinance, Authority No. 267

3. Fee (Tax)

An amount equal to 10% of the ticket revenue determined by the local authority through a resolution, approved by the Minister, and published in the Gazette.

Note:

• The collected Entertainment Tax amount shall first be deposited into the Sabha's deposit account.
• After the entertainment concludes, the remaining stamped printed tickets shall be submitted. The Entertainment Tax related to sold tickets shall be calculated, that amount shall be credited to the Sabha's revenue, the remainder shall be refunded to the organizer, and the total deposited amount shall be reconciled with the deposit account.

4. Procedure to be Followed by the Person Liable to Tax

• Printed tickets of each value shall be submitted to the Administrative Head of the local authority and stamped with their seal. (Along with this request, the quantity of printed tickets of each value must be verified by the original and a copy of the money receipt issued by the owner or manager of the printing press, along with a separate certificate issued by them.)
• An amount equal to 10% of the value of all stamped tickets shall be deposited with the Sabha as Entertainment Tax.

Note: Even a person requesting exemption from Entertainment Tax must deposit the applicable Entertainment Tax amount with the Sabha under this provision.

5. Procedure for Collecting Entertainment Tax

Note:

• Here, the applicant means, in the case of an entertainment, the owner, organizer, or any agent authorized by them through a written document.
• It shall be the duty of the Municipal Commissioner/Secretary to make necessary arrangements to prevent misuse of the password introduced by the organizer for stamping electronic tickets.