The federal government has decided to withdraw the income tax exemption previously granted to cinemas, a move that is expected to increase ticket prices nationwide.

Background & Impact

The exemption, introduced during the 2021–22 fiscal year, was aimed at supporting Pakistan’s entertainment industry, including cinemas and theaters. Industry stakeholders had welcomed the relief, as it helped ease operational costs and encouraged investment in new cinema projects.

With the tax exemption now revoked, cinemas will be subject to standard taxation, potentially leading to higher ticket prices. This change comes at a time when cinema operators are already facing rising utility costs and declining audience turnout.

Industry Concerns

Cinema owners and investors worry that the additional tax burden may discourage further investment in the sector. Many had hoped for continued government support to help revitalize the entertainment industry, especially after the challenges posed by the COVID-19 pandemic.

Looking Ahead

With ticket prices expected to rise, cinema operators may need to adjust pricing strategies or introduce new incentives to maintain audience engagement. The industry will be closely watching how this policy shift affects consumer behavior and overall cinema attendance in the coming months.

For more updates on Pakistan’s entertainment industry, stay tuned!