Now Here’s A Special Exemption . . .

The Hindu News reports that Slumdog Millionaire has been exempted from the entertainment tax in India so that more people can watch the film. According to the story:

Maharashtra Chief Minister Ashok Chavan said the film would be exempted from tax from Tuesday. He said the film has done India proud and raised the bar for Indian film industry. Announcing tax-free status for the movie, Delhi Chief Minister Sheila Dikshit said it has “created history in the field of Indian cinema”.

Not so odd when you think about it. In the U.S., we grant special exemptions all the time for specific economic reasons. The most widespread of these practices (and controversial, from a policy standpoint) is for states and local communities to provide property and other tax exemptions in order to lure businesses. Sales taxes are often abated on specific items such as food and drugs in order to make them less expensive for the poor. So why not exempt a cultural icon so that more people can experience it? On the other hand, let’s not extend the principle to the NBA . . .

JDC