Movie Tickets Expected to Get More Expensive After Budget 2025

The federal government has officially decided to end the income tax exemption that was previously granted to cinema operators, a move expected to impact moviegoers and the entertainment sector alike. This exemption, introduced during the fiscal year 2021–22, was aimed at supporting Pakistan’s struggling film and theater industry.

The decision to roll back the tax relief comes as part of the government’s latest budget measures for the 2025–26 financial year. With this change, income generated by cinemas will now fall under the standard tax regime. As a result, cinema owners may be forced to pass on the additional financial burden to consumers through higher ticket prices .

Industry insiders had earlier praised the exemption, stating that it played a significant role in reducing operational costs and encouraging investments in new cinema projects across the country. It had also been seen as a positive step to revive cultural venues and improve the country’s soft image.

However, the removal of this tax relief is likely to cause concern within the entertainment sector. Cinema operators are already facing multiple challenges, including rising utility bills, increased maintenance costs, and declining audience turnout due to the popularity of online streaming platforms.

Analysts believe this move may discourage new investments and put further strain on the already fragile entertainment landscape in Pakistan.

For now, viewers should be prepared for potential increases in movie ticket prices as operators adjust to the new tax requirements.