The state government will issue an ordinance shortly to amend the Mumbai Entertainment Tax Act, 1923, for this purpose.

Mantralaya sources told The Financial Express on Wednesday that the state cabinet cleared this proposal on Wednesday. The state revenue department will henceforth be the nodal department for giving entertainment tax exemptions. According to the revenue department, huge amount of cash is generally splurged on the dancers in over 650 bars in Greater Mumbai, Thane and Raigad districts. The dance sequences presented by these dancers do not fall under the category of Indian dances and thus be brought under the tax net, the department said.