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FICCI initiative to include entertainment tax in GST  

The Central Government will take up with the Empowered Committee on VAT (Value Added Tax) the media and entertainment industry’s demand for subsuming entertainment tax in the Goods and Services Tax (GST), which is slated for introduction from April 2010, Minister of State for Information and Broadcasting and External Affairs Anand Sharma said here on Tuesday.



 

Global convention

Speaking to the media on the sidelines of the Federation of Indian Chambers of Commerce and Industry (FICCI) Frames 2009, the 10th edition of the global convention on business of entertainment, Mr. Sharma said, “We will consider the entertainment industry’s demand, articulated by FICCI, for inclusion of entertainment tax in GST itself, so that there is single tax on the industry.”

Mr. Sharma said, a regulatory framework from the technology point of view, like the one for the telecom industry, was under discussion and a decision was expected soon.

Responding to the observations by FICCI President Harsh Pati Singhania, Mr. Sharma said, the Government was prepared to consider the further requirements of the industry to weather the adverse fallout of the global economic crisis. The Government, he said, had increased the DAVP (Directorate of Advertising and Visual Publicity) advertisement rates by 24 per cent to give relief to the media industry in view of the recent increase in newsprint rates and recently the customs duty on imported newsprint has been lowered. “We are still open and are willing to come out with a new relief package to provide stimulus to the industry,” Mr. Sharma said . The Minister said, “We want to create an environment that is welcoming to those who want to do business with and in India through joint ventures and collaborations. While there is full freedom to make any type of films in the country, the industry has a responsibility in ensuring that the larger interests of the society are addressed.”

Sushma Singh, Secretary, Ministry of Information and Broadcasting, said the Government was working on devising a suitable regulatory framework for digitisation of cable services. “This is a key factor in getting rid of problems such as under-declaration of subscribers and the practice of carriage fee being charged by cable operators, particularly in TRP (Television Rating Point) cities,” she added.

She said, another policy intervention being considered by the government was the prescription of a time period of five years within which the existing and new MSOs (multi-system operators) and LCOs (local cable operators) will have to digitise with some incentivisation from the licence fee as also support from the USO Fund for setting up two-way cable networks for providing broadband services in rural areas.

Beyond the five-year period, no new licence for cable operation will be given for analog services.

The Ministry of I & B, the Secretary said, was also working on extending the CAS (Conditional Access System) area first to the remaining parts of Delhi, Mumbai and Kolkata and then to the 55 cities as suggested by the Telecom Regulatory Authority of India (TRAI) group.

Source : Hindu - Chennai, India,  dated 18/02/2009

 

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