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Last Updated: Tuesday, 6 April, 2004, 16:07 GMT 17:07 UK
Bollywood cinemas end tax strike
Bollywood actress Namrata Shirodkar
Cinemas had been on strike in the home of the Bollywood film industry
Nearly 1,000 cinemas in the western Indian state Maharashtra, including the entertainment capital Bombay, have called off a three-week strike.

Cinema bosses said the state government had accepted their demand for a 10% cut in tax levied on tickets.

But they said other demands including permission to convert failing cinemas into other businesses had not been met.

During the shutdown cinemas lost an estimated 10m rupees (130,000) per day - twice as much as the government.

The state had levied a 55% entertainment tax on each ticket sold in Maharashtra, one of the highest in India. This will now be reduced to 45%.

Bombay, also known as Mumbai, is home to the Bollywood film industry.

RV Vidhani, chairman of the cinema halls owners' association, said the government's acceptance of only one of its demands was "like a drop in the ocean".

But he said they had to accept it in the face of stiff competition from multiplexes which do not pay entertainment tax.

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