There is an ongoing rift between the Excise Department and the Punjab Revenue Authority (PRA) over entertainment duty that began when a proposed Finance Bill that was tabled in the provincial legislature on 14 June gave authority to the PRA to levy entertainment duty.
This challenged the decades-long authority of the Excise Department to collect entertainment duty from cinemas, theatres, fashion shows, and other commercial or semi-commercial events, and to issue NOCs to conduct programs.
According to the PRA, the entertainment duty was in the services sector, owing to which it should be collected by the PRA and not the Excise Department.
However, the Excise Department is planning to request the provincial administration to reconsider the decision.
This dispute has made cinema owners fearful as they believe that the PRA will impose higher taxes.