New Delhi: The estimated Rs1,500-crore amusement park sector continues to grow at 10-15% despite the economic slowdown impacting entertainment businesses across the country, but lack of uniform taxation across states could be a hindrance, according to the Indian Association of Amusement Parks and Industries (IAAPI) president.
“We continue to grow at 10-15% despite the slowdown. Traditionally, though the sector is expected to see an impact to the slowdown, that has not happened till now,” IAAPI president Arijit Sengupta said.
But how long the situation will remain positive is not known, he added.
Sengupta said the industry was badly affected by the lack of a uniform entertainment tax for amusement parks.
“Since entertainment tax is a state issue, each state has its own policy. Entertainment tax ranges from 5% in Karnataka, 10% in Maharashtra, 25% in Gujarat to as high as 40% in Punjab,” he said.
IAAPI has made representations to individual state governments to provide for a level playing field to the players.
“We have urged them to keep it to a minimum of about 5% in order to pass on the benefit to customers,” Sengupta said.