The decision was taken at a weekly cabinet meeting chaired by Chief Minister Prithviraj Chavan, an official said.

The cabinet imposed an additional 10 percent entertainment duty on movie tickets priced between Rs.251 and Rs.350.

However, tickets costing between Re.1 and Rs.250 will see no fresh levy, the official said.

The cabinet also discussed ways to ensure that the average movie buff gets to watch films at a reasonable rates with family.

In the meeting, Chavan also approved relaxation of service tax on single-screen theatres across A, B, C and D graded city councils for five years.

According to a report, Maharashtra has 549 single-screen theatres, out of which around 100 are in rural areas. These do not see a full house and often struggle to break even.

The state is also mulling permitting single-screen theatres to charge an additional Re.1 service tax if they upgrade their technology, computerise ticketing and show Marathi cinema during prime time.