Television

Indirect benefits to entertainment industry: B4U

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MUMBAI: B4U India operations vice president Vijay Thaker feels that the budget is a fair mix of reforms and procedural changes.

 

Thaker says: "The budget will get a good response from individuals and the middle class. The point to note is that the relief given by the government from direct taxes (roughly around Rs 30 billion) has been compensated by the increase from the indirect taxes. We have not gone so far in detailed proposals of Budget."



Thacker says that the initial reaction after hearing the speech of finance minister is favourable and the views are as under:



1)This budget will increase the spending power of middle class due to savings in direct taxes and other reliefs. Part of such spending may be utilised for entertainment industry. People may agree to buy set top boxes without much follow up from cable operators.



2) Service tax in general has gone up from five per cent to eight per cent. Advertising agencies and cable operators will make a big hue and cry for such increments. But it will get settled as this is general norm for all industries.



3) Benefits to domestic satellite companies has been extended for one year. This may help the local satellite and telecom companies.



4) There is excise exemption in prerecorded audio CDs. This will help audio companies to boost their sales by competing with unorganised small companies. In turn, advertisements to TV music channels may increase from music companies.



5) There is no direct proposal for entertainment industry.



6) FDI (foreign direct investment), ECB (external commercial borrowings) changes will help corporate sectors. This will help Indian companies which have a presence in other parts of the world. 



7) Reduction in customs duty will help entertainment Industry also. Due to the benefits given to the IT and telecom sector, it is possible that the cost of set top boxes will come down eventually.

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