Bollywood's global superstar, Shah Rukh Khan has asked the central government to remove the Value Added Tax (VAT) and Service Tax (ST) on the entertainment industry and sought the conferment of de-facto industry status.

SRK said that it is imperative to bring the entertainment industry under the "Concurrent List" so that it can be governed by Central rules and enjoy tax concessions announced by the latter from time to time.

At present, the entire entertainment and film industry comes under State Government's jurisdiction because of which, it is unable to enjoy the dejure industry status conferred on it.

Khan later released a study on the entertainment industry, highlighting the need for the removal of VAT and ST.

The study has been done by the Associated Chambers of Commerce and Industry of India (Assocham). In the study Assocham said, "Retaining the industry in the State List deprives the tax concessions given by the Centre." Assocham has also called for the enactment of the Optic Disc Law to combat piracy. Such a law has been introduced in Malaysia and Hong Kong and the results have been encouraging.

The Government has set up five groups on piracy, taxation and custom duties, exports of films, promotion, development and marketing for films.

The Central Excise department under the Finance Act of 2007 has issued notices for the recovery of Service Tax from the industry in cases of renting, leasing and letting out immovable properties.