Cinema halls to be shut on February 05

By A Staff Reporter,Kathmandu, Jan. 31: Nepal Motion Picture Association, the umbrella organisation of film halls, announced the closure of cinema halls nationwide on February 5.

In a press statement issued on Tuesday, the association declared the closure as a symbolic protest, demanding the abolition of what they consider to be unreasonable taxes. 

The association alleges that the government has compelled the film sector to bear a tax burden exceeding 33 per cent under various tax categories. 

The statement, released by the association’s general secretary and spokesperson, Narendra Maharjan, asserts, “The film sector is obligated to pay over 33 per cent in taxes, encompassing value-added tax and corporate tax. In violation of the code prohibiting additional taxes, the imposition of film development fees, local entertainment taxes and various other levies has rendered the operation of the movie business impracticable.”  The association calls for the cancellation of other unjustifiable taxes, excluding value-added tax, and has decided to close cinema houses nationwide for one day on coming Monday, as a symbolic gesture.

According to the association, 450 theaters were I operation across the country before the establishment of the Film Development Board, but now their number has come down to 150.

According to the press statement, the film industry has experienced a severe downturn primarily attributed to the impact of the COVID-19 pandemic.

 Additionally, the association asserts that the burden of government-imposed taxes has further exacerbated the challenges, making it impractical to sustain business operations in the current scenario.