IndianMascot
Core Member
The media and entertainment (M&E) industry is on the cusp of a sea change with the digitisation wave. Not just broadcasting but other sectors with in M&E—films, radio, animation and gaming—are also eyeing transformation with the advent of new technologies and an ever increasing appetite of Indian consumer for entertainment.
However, what they are eyeing is support from the government, not monetary, but in form of rationalised tax structure.
The biggest issue that the industry is facing is of multiple taxation. Across sectors, media and entertainment executives are demanding rationalisation in taxes and an enabling environment. The direct and indirect taxes levied on different sectors are as high as 40-56%.
In the Broadcasting sector, for instance, the cable and DTH companies have been facing multiple taxation and custom and import duty issues. The DTH industry has been asking for a reduction in the license fee from 10% to 6%, while they also want to bring DTH on the negative list and get exemption from Service Tax.
Harit Nagpal, MD & CEO, Tata Sky & President, DTH Operators Association of India said, “DTH is growing as fast as it can and the growth has been phenomenal. In fact, the DTH industry is contributing revenues, to the government and the broadcasters, that are disproportionate to its volume compared to the cable industry. Now with the digitisation mandate, DTH would only make further in roads. But the industry requires heavy investments during this high growth stage and these are impacted by high and uneven rates of tax charged to us. The current tax structure exceeds to around 35% of the revenues when you look at the various taxes and revenue share arrangements with the government. Given the current scenario, Taxes and revenue-share put together is a big hurdle for a nascent industry which is yet to break-even.”
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However, what they are eyeing is support from the government, not monetary, but in form of rationalised tax structure.
The biggest issue that the industry is facing is of multiple taxation. Across sectors, media and entertainment executives are demanding rationalisation in taxes and an enabling environment. The direct and indirect taxes levied on different sectors are as high as 40-56%.
In the Broadcasting sector, for instance, the cable and DTH companies have been facing multiple taxation and custom and import duty issues. The DTH industry has been asking for a reduction in the license fee from 10% to 6%, while they also want to bring DTH on the negative list and get exemption from Service Tax.
Harit Nagpal, MD & CEO, Tata Sky & President, DTH Operators Association of India said, “DTH is growing as fast as it can and the growth has been phenomenal. In fact, the DTH industry is contributing revenues, to the government and the broadcasters, that are disproportionate to its volume compared to the cable industry. Now with the digitisation mandate, DTH would only make further in roads. But the industry requires heavy investments during this high growth stage and these are impacted by high and uneven rates of tax charged to us. The current tax structure exceeds to around 35% of the revenues when you look at the various taxes and revenue share arrangements with the government. Given the current scenario, Taxes and revenue-share put together is a big hurdle for a nascent industry which is yet to break-even.”
Wish to read further, ------->