Ficci seeks reduced excise, customs duty and service tax

MUMBAI: With Budget 2003-4 just three days away, various sections of the entertainment industry are ready with their own wish lists, hoping for a bigger pie of subsidy and a lower share of tax.


Ficci has asked that customs duty on specified capital equipment for the electronic industry be reduced to five per cent and that the list of specified capital equipment needs to be expanded to include items like 

1. DVD 9 replication line or DVD production equipment comprising of two injection moulding machines

2. one or two metallizers and

3. one UV bonding station and one inspection unit

Ficci has also asked that the levy of excise duty on black and white TV sets and analogue audio (low priced) sets be withdrawn. The levy of eight per cent excise duty in Budget 2002 had resulted in negative growth of the industry as also in a flourishing grey market in B&W TV and analogue audio industry, Ficci claims.

While Ficci supports the imposition of excise duty, it says there is a need to treat entertainment software differently from other manufactured articles and similar to IT software. "There is a strong case to remove excise duty on CDs, as CDs too are a medium for carrying software", says the Federation.

As regards the telecom cable industry, Ficci says that the industry is facing a recession due to anomalies in customs duty especially with high duties on raw materials. Major raw materials like polyethylene, copper, steel tap, polyster yarn and optic fibre face peak customs duty resulting in high prices to the industry. However finished products attract lower duties (15 per cent for telecom cables). "As per the basic policy, there has to be duty differential between raw materials and the imported finished products and raw material should attract lowest rate of duty", the Ficci report notes. 

As regards service tax, Ficci notes that unlike most industries, entertainment is a unique combination of skill, talent, technology and infrastructure. "The creation of a product like a film involves several stages of production, distribution and exhibition. These various stages, inter alia, produce a product which is comprehensible only at the final stage. In the system in vogue, the same product will be taxed at multiple points which obviously cannot be the intention of the government."

As regards advertising and brand building, Ficci observes that investment in these sectors in India is one of the lowest in the world. "Since advertising budgets of the corporates and others are broadly inflexible/fixed and additional levy of five per cent would lead to reduction in media revenues particularly of electronic media as the attempt would be to absorb the tax within the existing budgets."

A tax on advertising 'non VATable tax - does not exist anywhere else in the world' and such a levy at this juncture would send contrary signals to the rest of the world. "It is widely felt that one more tax on consumer goods industry's critical inputs like advertising will make their products even more expensive and thereby reduce demand further."

Ficci has also asked that CENVAT credit be given for service tax on this industry as well, and that service tax not be levied in case of technical know how fee.

Latest Reads
TLC firmly establishes itself as a clear leader in lifestyle genre with 24% upswing in ratings

TLC, leading lifestyle channel from Discovery Communications India, soared to the top of Lifestyle genre with a 24% increase in ratings according to the latest BARC data*. TLC secured 8640 impressions ‘000 in week 11 as compared to 6972 impressions ‘000 in Week 10. The upsurge in ratings is...

Television TV Channels Factual & Documentary
Balaji Telefilms appoints Jyoti Deshpande as non-executive additional director

Balaji Telefilms has appointed Jyoti Deshpande as the non-executive additional director. The appointment, which was approved following a circular resolution by its board on 22 March, is in compliance with share subscription agreement entered into between Balaji and Reliance Industries Ltd (RIL) on...

Television TV Channels People
Aaj Tak relaunches 'Seedhi Baat'

MUMBAI: TV Today Network has relaunched its big-ticket Hindi show Seedhi Baat. The show will be hosted by Sweta Singh, news anchor and executive editor of special programming at Aaj Tak. The first episode of the show, which  will air at 8 pm on 24 March, will feature BJP president Amit Shah as the...

Television TV Channels News Broadcasting
Dsport tops BARC ratings with Nidahas Trophy viewership

MUMBAI: Dsport, which launched last year in February, became the top ranked sports channel according to Broadcast Audience Research Council (BARC) all-India data in week 11. Rishtey Cineplex attracted a big chunk of the Hindi-speaking audience while competing with pubcaster DD Sports.

Television TV Channels Sports
Zee TV’s ‘Ishq Subhan Allah’ year’s second highest weekday fiction launch across GECs

Zee TV recently put the spotlight on Triple Talaaq with its new fiction show Ishq Subhan Allah introducing viewers to the turbulent love story of Zara (Eisha Singh) and Kabeer (Adnan Khan) – an Islamic couple dealing with the issue first-hand. Raising pertinent questions about women having a say...

Television TV Channels GECs
&Privé HD’s Unforgettables at 9 property celebrates movies that have left an indelible mark

There are some movies that become a part of your life and you can’t help but watch them over and over again. There are some characters that reveal a hidden element of yourself that results in an instant connection. &Privé HD’s property ‘Unforgettables at 9’ brings such classics every Monday to...

Television TV Channels English Entertainment
Living Foodz raises a Toast to India’s finest restaurants, night

India’s premium lifestyle channel, Living Foodz organized the second edition of Epicurean Guild Awards at an evening which saluted the game changers in India’s fine-dining, nightlife and lifestyle entertainment space. Held on March 22 at Sahara Star, Mumbai, the event was curated by Chef Manu...

Television TV Channels English Entertainment
Zee Anmol regains top Hindi GEC spot across genres

BENGALURU: Zee Entertainment Enterprises Ltd’s (Zeel) free-to-air (FTA) Hindi GEC Zee Anmol has returned to second place in Broadcast Audience Research Council (BARC) list of top 10 channels across genre in week 11 of 2018 (Saturday, 10 March 2018 to Friday, 16 March 2018). The numero uno position...

Television TV Channels Viewership
Emerald Media buys minority stake in Global Sports Commerce

MUMBAI: Emerald Media, the Pan-Asia company backed by global investment firm KKR, has acquired a significant minority stake in sports technology and management company Global Sports Commerce (GSC) through a combination of primary and secondary investments.

Television TV Channels Sports

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories