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They met information and broadcasting minister Sushma Swaraj recently
under the aegis of the Indian Broadcasting Foundation (IBF) as part
of a pre-Budget meeting and submitted a memorandum on the issues
they want resolved.
"The IBF members did meet me to present their pre-Budget memorandum
and I have assured them that the ministry will do its utmost to
have the grievances redressed," Swaraj said today, adding that the
broadcasters also lauded the government's initiative on conditional
access and extended help in bringing about addressability in Indian
cable homes.
The three main issues that the broadcasters want resolved or looked
into by the government are:
- Waiver of five per cent service tax imposed on broadcasting services
- Lowering of customs duty on equipment meant for broadcasting
- Resolving the issues of tax that is deducted at source by the
government.
According to Swaraj, while the first two issues are likely to be
taken up by her during her meetings with finance minister Jaswant
Singh, she advised the broadcasters to petition the Central Board
of Direct Taxes (CBDT) on the last issue.
During 2001-02, the government had levied five per cent service
charge on the likes of studio and recording facilities that, the
broadcasting industry had said, would have a negative impact on
a sector which was still developing in India.
Since then the issue has cropped up time and again and, earlier
this year even resulted in some broadcasters like Star India and
Sony Entertainment TV India refusing advertisements from companies
and their agencies which did not include five per cent service tax
in the release order.
On the customs duty, the IBF's viewpoint is that the various duties
levied on equipment meant for broadcasting is not at par with those
meant for the IT industry, even when the same equipment was used
by both the IT and broadcasting industries.
"The broadcasters felt a separate duty is levied on a equipment
which they brought in , while a lower duty was levied when the same
equipment was brought by the IT industry. This, according to them,
was a discriminatory practice which should be removed," Swaraj said.
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