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Movie Theaters Face Tax for Foreign Films

A bill calling for value-added tax to be imposed on movie theaters that show foreign films was submitted to the State Duma on Friday, RIA-Novosti reported.

While movie theaters, as cultural establishments, are currently exempt from the tax, those theaters that show any film of non-domestic origin would have to pay, according to the bill proposed by United Russia Deputy Sergei Zheleznyak.

The bill, which seeks to amend Tax Code Article 149, also calls for a mandatory quota of Russian film showings at theaters. Any theater not screening a Russian film at least one-fifth of the time would face a fine of 100,000 ($3,200) to 400,000 rubles.

Zheleznyak says the legislation aims to preserve Russia's film industry.

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