Previously planned tax increases for cinema and theatre look set to be scrapped, with planned tax amendments to the tax law for the industry being reviewed by the Finance Ministry at the request of Prime Minister Moustafa Madbouly, a government source told EnterpriseAM. Driving the move were concerns that the planned tax increase would negatively impact the creative industries, we were told.

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The government is also drafting a support package for cinema and theater producers, which will help them produce and market their productions, we were told.

But not everyone in the entertainment sector will be spared, with the state still planning to go ahead with tax increases for certain types of parties and locations where they are held. There’s also a push to adjust the minimum entry fees for concerts with foreign artists, according to our source.

One option being studied is to restructure the tax into progressive brackets based on ticket prices, easing pressure on theaters and smaller producers while imposing higher rates on high-end concerts and events in tourist hotspots, the source added.

DATA POINT- Entertainment tax revenues stood at just EGP 1.4 bn last fiscal year; the Finance Ministry is targeting EGP 1.2 bn this year. Entertainment providers say the burden is already heavy due to overlapping VAT, property taxes, and other fees, the source said.

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