Cable Digitisaton to IncreaseTax Collection Manifold:Economic Survey

[Thakur]

New Delhi: Both the Centre and state
governments are set to benefit from the
digitisation of cable television in India as it
would lead to manifold increase in tax
collection, according to the Economic Survey
for 2013-14.
"Preliminary data from the state governments
show that there is already two to three fold
increase in entertainment tax collections," said
the survey tabled by Finance Minister Arun
Jaitley in Parliament on Wednesday.
It is estimated that the central government and
the state governments stand to gain
significantly, as the transparency in the
subscriber base through digitisation would lead
to manifold increase in the tax collection, the
survey added.
The government has set a deadline of
December 31, 2014 to completely digitise
cable TV delivery in India and switch off the
analogue mode that has been in service for a
long time.
According to the survey, digitisation is also
creating an opportunity for the domestic
electronics industry to produce set-top-boxes
(STB) required for it and generate employment
opportunities.
"There is a good opportunity for local
manufacturing of STBs, leading to employment
generation," it added.
In the first two phases of digitisation drives in
the metros and 36 cities, including state
capitals, more than three crore STBs have been
installed.
Other mediums of cable TV viewing, such as
direct-to-home (DTH), are adding one million
customers every year, it said, adding that the
government has also allowed two operators to
provide services through headend-in-the-sky
(HITS) system. Cable Digitisaton to Increase Tax Collection Manifold: Economic Survey – NDTV Profit