INDORE: Cable TV operators and multi-system operators in Madhya Pradesh have jointly decided to stop beaming of any entertainment channels from Wednesday night, protesting against the state government decision to levy entertainment tax on them.
Briefing newsmen, cable operators & MSOs associations said telecast of all entertainment channels would be stopped while they would continue to beam all other channels including news, sports and others.There are nearly 5000 cable operators in the state and more than 400 MSOs. However, there are only four big MSOs in the state. A total of 30000 people working in the industry are likely to become jobless in case the cable operators shut their shops completely, they claimed.
These associations have expressed their deep anguish over the state government's decision to impose entertainment tax on them under the new regime, effective from April last year. First, the state government amended the Act and asked us to pay the tax at the rate of 20% of their turnover as against the earlier existing mark of Rs 20 per connection. In fact, the MSOs had gone to the state high court on the issue only to lose the battle.
They cable operators feel that the state government has taken this decision under pressure from DTH players who would likely to gain from this situation.
The decision by the cable operators comes at a time when the commercial taxes department is tightening of noose on them. First they raised a demand of Rs 12 crore, which they had submitted when the tax collection was being done by the state excise department.
However, a commercial taxes department official summoned MSO authorities and asked them to pay up Rs 5 crore each.
Talking to TOI, a senior executive of an MSO, said on request of anonymity " it's a draconian rule. It will ruin the cable TV and MSO sector in the state. We have no other option but to stop beaming of channels".
http://timesofindia.indiatimes.com/city/indore/Cable-TV-operators-unplug-entertainment-channels/articleshow/12276722.cms
Briefing newsmen, cable operators & MSOs associations said telecast of all entertainment channels would be stopped while they would continue to beam all other channels including news, sports and others.There are nearly 5000 cable operators in the state and more than 400 MSOs. However, there are only four big MSOs in the state. A total of 30000 people working in the industry are likely to become jobless in case the cable operators shut their shops completely, they claimed.
These associations have expressed their deep anguish over the state government's decision to impose entertainment tax on them under the new regime, effective from April last year. First, the state government amended the Act and asked us to pay the tax at the rate of 20% of their turnover as against the earlier existing mark of Rs 20 per connection. In fact, the MSOs had gone to the state high court on the issue only to lose the battle.
They cable operators feel that the state government has taken this decision under pressure from DTH players who would likely to gain from this situation.
The decision by the cable operators comes at a time when the commercial taxes department is tightening of noose on them. First they raised a demand of Rs 12 crore, which they had submitted when the tax collection was being done by the state excise department.
However, a commercial taxes department official summoned MSO authorities and asked them to pay up Rs 5 crore each.
Talking to TOI, a senior executive of an MSO, said on request of anonymity " it's a draconian rule. It will ruin the cable TV and MSO sector in the state. We have no other option but to stop beaming of channels".
http://timesofindia.indiatimes.com/city/indore/Cable-TV-operators-unplug-entertainment-channels/articleshow/12276722.cms
