Dinesh jain
Contributor
- Joined
- 3 Feb 2014
- Messages
- 13,547
- Reaction score
- 13,957
The Indian Broadcasting Foundation ( IBF) has urged the government to classify TV broadcasting as an item of mass consumption and levy a rate of 5% under the proposed Goods and Services Tax (GST) regime.
A 5% levy on TV broadcasting will make it affordable for the end consumers, the IBF contended. It has also urged the government to treat TV and radio on a par with print in the new regime.
“It is important that the government recognises TV services which has evolved over the years as a product/service of mass consumption to be classified and categorised under the item of mass consumption having a GST rate of 5% so that it becomes affordable to masses. Not only does it provide infotainment, entertainment and influence public opinion, but unlike the other mediums, it is not constricted by level of literacy and is education agnostic,” ZEEL MD and IBF president Punit Goenka said in a statement.
“Going by the number of TV households that stands at currently 120 million, we submit to the government that broadcast services, i.e. TV and radio, must be treated on a par with print in the new GST regime. This submission is based entirely on the fact that TV services have become an integral part of everyday life to the vast majority in the country and the general economic downturn globally has impacted the sector extensively,” he added.
As per the information updated by the Ministry of Information & Broadcasting (MIB), there are 899 channels in the country, out of which 399 are news and current affairs channels and 500 are non-news and current affairs channel as of 31 December 2016.
Sony Pictures Networks president, network sales and international business Rohit Gupta also regretted that the directorate of audio visual and publicity (DAVP) has not revised ad rates since 2010.
“Compounding the woes is the DAVP advertisements that all broadcasters have to mandatorily carry on their networks, the rates for which have not been revised since 2010, thereby consuming massive inventories. The rock-bottom rates are not at all in keeping with the existing market rates and allows little flexibility for manoeuvrability in carrying out businesses and is heavily subsidised by the broadcasters,” Gupta stated.
IBF urges govt to levy 5% GST on TV broadcasting | TelevisionPost.com
A 5% levy on TV broadcasting will make it affordable for the end consumers, the IBF contended. It has also urged the government to treat TV and radio on a par with print in the new regime.
“It is important that the government recognises TV services which has evolved over the years as a product/service of mass consumption to be classified and categorised under the item of mass consumption having a GST rate of 5% so that it becomes affordable to masses. Not only does it provide infotainment, entertainment and influence public opinion, but unlike the other mediums, it is not constricted by level of literacy and is education agnostic,” ZEEL MD and IBF president Punit Goenka said in a statement.
“Going by the number of TV households that stands at currently 120 million, we submit to the government that broadcast services, i.e. TV and radio, must be treated on a par with print in the new GST regime. This submission is based entirely on the fact that TV services have become an integral part of everyday life to the vast majority in the country and the general economic downturn globally has impacted the sector extensively,” he added.
As per the information updated by the Ministry of Information & Broadcasting (MIB), there are 899 channels in the country, out of which 399 are news and current affairs channels and 500 are non-news and current affairs channel as of 31 December 2016.
Sony Pictures Networks president, network sales and international business Rohit Gupta also regretted that the directorate of audio visual and publicity (DAVP) has not revised ad rates since 2010.
“Compounding the woes is the DAVP advertisements that all broadcasters have to mandatorily carry on their networks, the rates for which have not been revised since 2010, thereby consuming massive inventories. The rock-bottom rates are not at all in keeping with the existing market rates and allows little flexibility for manoeuvrability in carrying out businesses and is heavily subsidised by the broadcasters,” Gupta stated.
IBF urges govt to levy 5% GST on TV broadcasting | TelevisionPost.com
