Though the Government has hiked customs duty on the import of set-top boxes (STBs) to boost domestic manufacture, it is likely to add to the cost burden of a majority of Direct-to-Home (DTH) and Multi System Operators (MSOs). Barring some players, such as Videocon D2H, most other big DTH companies and MSOs import set-top boxes as of now.
Salil Kapoor, Chief Operating Officer, Dish TV, said, “The doubling of customs duty on set-top boxes could lead to a slowdown in the pace of digitisation. The players already offer the boxes to consumers at subsidised rates and bear the burden of multiple taxes. How much more can the companies absorb?” He said the hike in the customs duty could potentially lead to a price increase.
Echoing similar views, Harit Nagpal, President of the DTH Operators Association of India and MD & CEO, Tata Sky said, “The DTH industry is already paying 32 per cent of its revenue as taxes. At a time like this, when the Government’s digitisation mandate is entering its second phase, the industry requirement is high and there is no local manufacturer of repute who can deliver quality boxes in such quantities. Therefore, this increase seems out of place and in all fairness should be reversed.”
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Salil Kapoor, Chief Operating Officer, Dish TV, said, “The doubling of customs duty on set-top boxes could lead to a slowdown in the pace of digitisation. The players already offer the boxes to consumers at subsidised rates and bear the burden of multiple taxes. How much more can the companies absorb?” He said the hike in the customs duty could potentially lead to a price increase.
Echoing similar views, Harit Nagpal, President of the DTH Operators Association of India and MD & CEO, Tata Sky said, “The DTH industry is already paying 32 per cent of its revenue as taxes. At a time like this, when the Government’s digitisation mandate is entering its second phase, the industry requirement is high and there is no local manufacturer of repute who can deliver quality boxes in such quantities. Therefore, this increase seems out of place and in all fairness should be reversed.”
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