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Even as Maharashtra-based cable operators continue to battle in court against the Rs. 45 entertainment tax, operators based in Delhi will now have to shell out more on entertainment tax with regards to cable television and direct-to-home (DTH). While the tax in the Capital has gone up from Rs. 20 to Rs. 40, entertainment tax for cinema halls has also been hiked by 20-40 per cent.
The Arvind Kejriwal-led Aam Aadmi Party (AAP) has hiked the entertainment tax under the new budget. Direct-to-home operators and Delhi-based multi system operators (MSOs) have termed the hike in entertainment tax an unwelcome move.
Anil Khera, President of DTH Association of India, has said the tax hike by AAP in Delhi is bound to hit the aam aadmi.
"The doubling of entertainment tax seems unfair and illogical. DTH as a platform is considered as critical to citizen’s right to information, news, education and entertainment," he said.
Pointing out that the sector is already saddled with a high tax, "where 33 per cent of revenues are taxed between the Centre and State," Khera said: "DTH operators, which comprise Tata Sky, Dish, Airtel, Videocon D2h, Sun and Reliance, will have no choice but to hike their tariffs in Delhi to accommodate this hike in entertainment tax and the load will finally fall on the customer."
AAP govt hikes tax on DTH, cable TV operators in Capital | Business Line
