China will draw five percent from its annual film box office revenue to supplement a fund that's designed to support its national cinema, according to a government statute issued recently.

"The Special Fund for the National Cinema Development" will be used to support the national cinema by lending, rewarding or financing the production of "important China-made feature films," said the statute issued by the Ministry of Finance and the Publicity Department of the CPC Central Committee.

China has been drawing 5 fen (0.625 US cent) from each film ticket sold since 1991. The new requirement will mean four times that amount could be deducted and flow into the fund.

"The Ministry of Finance, together with other relevant departments, must improve the management of the former special fund for the cinema and formulate measures to collect and use the new fund," it said.

China earned 2 billion yuan (US$250 million) of film box office revenue in 2005. A film ticket generally sells 50 yuan (US$6.25) in China.

(Xinhua News Agency June 27, 2006)