Budget 2013: FICCI says rationalise tax structure for DTH & cable services

Stating that both DTH and cable services are reeling under the 'heavy burden' of multiple taxation and levies, Federation of Indian Chambers of Commerce and Industry (FICCI) in its pre-budget 2013 memorandum has asked for the taxation structure to be rationalized. This will help ensure proper growth and development of the entertainment sector, said FICCI. 

FICCI said that the multiple taxes include license fee, service tax, entertainment tax, VAT on customer premises equipment (STB, Dish Antenna etc.). "These cumulatively add up to as high as 56%. These levies are acting as an impediment to the growth and development of these services," said FICCI. 

FICCI has also recommended that the customs duty on major items in digital addressable broadcast distribution should be reduced to zero. "Migration to addressable digital systems calls for large capital investment. This would involve changing or u-grading of head-ends by MSOs (Multiple System Operators) and provision of STBs at the customer premises," said FICCI. 

Therefore, during the migration period there is a need to bring down the prices of imported equipments by reducing basic custom duty to make it affordable for the consumers and to facilitate smooth migration from analogue to digital, justified the industry body. 

FICCI said that the government, as a special measure, should allow reduction of the basic custom duty on the major items in digital addressable broadcast distribution i.e. digital head-end equipments and STBs falling under Chapter 85 of the customs tariff to zero level to give a boost to conversion of the broadcast distribution network to digital addressable.

Source: http://cablequest.org/news/cable-news/item/1571-budget-2013-ficci-says-rationalise-tax-structure-for-dth-cable-services.htmlSource: http://cablequest.org/news/cable-news/item/1571-budget-2013-ficci-says-rationalise-tax-structure-for-dth-cable-services.html