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1936. Such tax is covered by stamps attached by the distributor to receipts for payments received from exhibitors for the rental of films. In addition to this, distributors pay a tax on their capitalization plus stamp taxes, which latter comprise Government stamps attached to contracts and receipts.
National producers, under a decree issued Februarys, 1936 and published in the Diario Oficial of February 7, 1937, pay no income tax on receipts obtained from the exploitation of films which they produce, whether such exploitation for exhibition purposes is in Mexico or in foreign countries.
THEATERS
According to a census completed in November, 1937, there are 1,115 theaters in Mexico, and of these 543 are equipped for sound. It is believed that most of the theaters listed as not equipped for sound are inactive and are not patronized regularly by the public, inasmuch as the showing of silent films in Mexico is very restricted.
Average seating capacity of wired theaters is placed at 750 each, giving a total estimated seating capacity for the 543 wired theaters of 407,250.
The avarage admission price is estimated at 0.40 pesos. The Mexican peso is currently quoted at 3.60 pesos for $1 United States currency, or 5pO . 2778 United States currency equals 1 peso, approximately. Admission prices vary according to the class of the theater. Maximum admission charge in Mexico City is 2 pesos at several first-class houses, but this top admission price is generally applicable for outstanding films and on holidays. Admission prices outside of the capital vary from 0.10 peso to 1.50 pesos.
Films with romantic themes, comedies (if competently done), and musicals are preferred. Westerns find a considerable following in the rural districts, if the heroism is not so heavily drawn as to be considered ludicrous, as happens in many cases. Mexican audiences outside of Mexico City are reported to Drefer films that do not have too much talking, inasmuch as many in the interior regiors of the country cannot read and the theaters have, to a considerable v"xtent, abandoned the policy of someone reading the titles to the public. Mexican producers have stressed folklore plots in a considerable number of pictures made during 1936 and 1937, but this theme is due to be less and less used, inasmuch as audiences are reported to be tiring of this type of film.
SOUND
A total of 543 motion picture houses, according to a recent completed census, are wired for sound in Mexico. Prospects for selling sound equipment in those tneaters unwired are said to be good. Of the 572 unwired theaters listed in the census, quite a number could be profitably wired for sound. In
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