Cable operators demand entertainment tax rollbacka

The Cable Operators and Control Room Owners Union have appealed to the Maharashtra government to roll back the hike in entertainment tax imposed since April this year. Terming it as the most retrograde step, the union has instead called upon the state government to impose such tax on viewers, newspapers, magazines and pay channels.

The Union, which represents over 15,000 cable operators in the state has threatened to close down operations on August 22 and 23 from all over the state, if the government fails to act on this front. Union representatives met chief minister Vilasrao Deshmukh and the state revenue minister Ashok Chavan, who are believed to have assured them to look into their case.

The state government has increased entertainment tax from Rs 5 to Rs 10 in B class municipalities, Rs 10 to Rs 20 in A class municipalities and Rs 15 to Rs 30 in municipal corporation limits since April this year with a view to mobilising an additional Rs 36 crore annually.

However, the union claimed that the total bill collection was never 100 per cent, but it reaches up to 70 per cent. “Ironically, we have become mere bill collectors. We have to bear the additional burden, as the consumers are reluctant to shell out additional charges,” said RT Hingorani, chief executive officer of IndusInd Media & Communications Ltd.

Hingorani said that a large number of cable operators have to pay a huge amount to pay channels and it left them with less funds to bring in newer technologies. The cable operators would not be able to provide Internet through cables or go in for the much-talked about convergence if the tax remains so high.

Prakash Pohare, union secretary demanded that the state government should impose and recover such tax on viewers without making it binding on cable operators. He also called upon the state government to unconditionally release gadgets of cable operators in various parts of the state. The state machinery had already siezed gadgets following various lacunaes in keeping proper books on tax collection.

Sanjay Jog

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