Wednesday, December 22, 2010

Why is Music Taxing today?


As an avid music listener and someone who frequents music concerts, I jumped at the idea of Bryan Adams coming to Mumbai in February and bought the tickets. Such concerts are far and few in between in Mumbai but I pacify myself by visiting Hard Rock CafĂ© or the local but famous Not Just Jazz by the Bay. The price of the ticket to the Bryan Adams concert made sure I didn’t indulge in anything else for that month.

People from other cities or countries with enough means are generally not put in such positions. The difference then is not your earning capacity or inflation but a simple word called tax. The city of Mumbai faces entertainment taxes far higher than many other places. The Mumbai Entertainment Tax (Amendment) Bill 2010 passed by the Legislative Assembly enables the government to now impose taxes on live performances at all venues amongst other things.

The new tax structure proposes the entertainment tax levied on live performances in the city to be 25 percent, an amount no proprietor would be ready to shell out, instead moving towards the easier alternative of recorded music. The effects of the this new tax structure can already be seen with many musicians having already lost their jobs as freelance artists, singers and performers at hotels and bars are being fired.

The ticket prices soar with every passing year and the performances decline. Over the last few years Mumbai has already lost out on many foreign artists performing due to the sky high entertainment and other varied taxes on the performances. Being the Entertainment capital of the country, Mumbai is now becoming the first city which is hearing the death knell of its musicians.

Recently, a number of musicians gathered at Carter Road, a locality known for its rich and famous, young and enterprising people, to protest against the entertainment tax and performed without charging a penny. The reason behind the protest is that when music is a form of expression and in India we all have the freedom to expression is it fair to then be taxed when this freedom is utilized?

Another argument being put forth by the musicians, music enthusiasts and the young politicians alike is the fall in the level of tourism if this tax is implemented. Live performances are used to showcase the culture of a city and with the end of this mode of entertainment, there would be little, if anything at all, left to attract tourists to Mumbai.

With carol groups being replaced by protest concerts all over the city this winter, we can only hope that this is not the last time we can enjoy live performances without having to search the papers for the elusive concert and the hefty ticket price. 

2 comments:

  1. Good and interesting topic! While I agree with the points discussed the only place I disagree is that if the musicians can earn money from expressing this fundamental right then they should not have any problem in being taxed for it. The only discussion should be by what percent!

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  2. Having bought those tickets myself, I totally understand where you're coming from. Even World Cup tickets are more expensive in Bombay as compared to other places, which may be justified by the location and atmosphere, but does not warrant the ridiculous exaggeration in the price tag. The entertainment tax should definitely come down!

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