Kannada film industry is smaller when compared to Telugu or Tamil industries. Moreover, the state govt. has exempted all Kannada films from entertainment tax. So where does the hefty entertainment tax comes from?
The answer is simple, from non-Kannada films. As per the official data released by the tax department, Karnataka govt. amassed staggering Rs 109 Cr revenue from the non-Kannada movies released in the Kannada speaking state in 2015-16.
While Bengaluru earns two thirds of the entertainment tax, Mysuru and Mangaluru contribute most of the remaining chunk. The facts that Bengaluru is home to one of the largest migrant populations from across the nation and almost all theatres in the city limits levy high ticket rates make non-Kannada movies a great source of revenue for the state government.
An official at the department of commercial taxes revealed that Telugu movies bring the lions share followed by Hindi and English films. 'Baahubali' and 'Kabali' have earned an entertainment tax of Rs 9 Cr each from Bengaluru theaters only. This amount will go up further if collections from other cities are also added.
Maximum revenue comes from multiplexes and the number has been steadily rising over the years - See more at: http://www.gulte.com/news/54010/Bengaluru-Non-Kannada-Telugu-Movies-Rule#sthash.chW5rdjA.dpuf
