Movie Tickets to Get Expensive as Govt Withdraws Cinema Tax Exemption

ISLAMABAD: Moviegoers may soon have to pay more for tickets, as the federal government has proposed to withdraw the cinema tax exemption in the FY2025 federal budget — a move that could increase operational costs for cinemas and lead to higher ticket prices.

The exemption, introduced in fiscal year 2021–22, had been a relief for Pakistan’s struggling entertainment industry, helping cinemas recover from pandemic-era losses and reduced footfall.

Now, with the proposal to end this relief, stakeholders fear that cinemas will pass on the added tax burden to consumers, making movie tickets more expensive in the coming months.

Although the measure is still under consideration, an official announcement is expected during today’s budget speech in the National Assembly.

Industry experts warn that withdrawing the cinema tax exemption could hamper recovery efforts and dampen public interest in local entertainment, especially at a time when cinema houses are already facing high energy costs and limited audience turnout.