Manufacturers oppose licence fee plan for TVs, radios

NEW DELHI: Prasar Bharati proposes, the market disposes.

Prasar Bharati Corporation, the autonomous body overseeing the work of Doordarshan and All India Radio, wants to impose a licence fee on television and radio sets in the country to generate additional revenue, but electronics goods manufacturers are against it.

Prasar Bharati has also appealed to the government that the tax exemptions that were being extended to it earlier be restored. The exemptions were withdrawn during the presentation of 2002-03 Union Budget; a move that has not enthused the Prasar Bharati mandarins much, anyway.

Coming back to the licence fee matter, according to Prasar Bharati sources, the management committee of the corporation dwelled on the issue yesterday. However, no consensus was arrived at as there are "various pulls and pressure" working for and against the proposal.

At present, Prasar Bharati depends on the government for a major part of revenue in the form of grant. To reduce this dependency, it is searching for new areas for revenue generation.

The sources said that Prasar Bharati's yearly expenditure is estimated to be around Rs 20 billion for the current year. However, the organisation struggling to meet its annual earnings target, may end up with about Rs 7 billion through advertisements and other revenues from radio and TV. The gap between the expenditure and income would have to be adjusted by the government, by way of grants and loans.

Prasar Bharati wants to impose a one-time licence fee on all TV and radio sets sold in the country. Since the amount would become part of the cost of the goods purchased, the manufacturers' lobby is resisting the move.

For example, if a TV set now is retailed at the maximum price of Rs 9,500, an additional Rs 500 (assuming that's the licence fee) would take the price to Rs10,000, which would attract a different set of excise duties.

"In a bid to avoid higher excise duty (different price categories attract different sets of excise duties in India), the electronics goods manufacturers are not much in favour of a licence fee being imposed at the point when goods are sold," a Prasar Bharati source explained.

Why cannot the corporation resort to the mode of licence fee collection that was prevalent few decades back when a fee on radio sets was collected on an annual basis?

Simply because the cost of the whole process of licence fee collection would outstrip the amount collected and would also be cumbersome, sources point out, adding that earlier the fee was deposited in post offices by the radio set owners. "Maintaining the annual record and the final collection these days may prove to be too bothersome," a senior corporation official said.

Moreover, the government agencies too, are not too enthused, though the licence fee proposal would be discussed in detail in a board meeting of the Prasar Bharati, slated to be held in the middle of next month.

According to estimates, there are 125 million radio sets and 80 million TV sets in the country. If the government gives approval to this proposal, the licence fee collections will be a few hundred million per annum, an estimate points out. But then Prasar Bharati probably, cannot impose a licence fee with retrospective effect. It can be only done for all TV and radio sets sold as and when the proposal is notified.

Latest Reads
Cosmos-Maya’s next international co-production is a spin-off series of the much talked about 3D Animation feature film Leo da Vinci: Mission Mona Lisa

is another high quality 3D animation international co-production - a spin-off series based on the recently released film Leo da Vinci: Mission Mona Lisa.

Television TV Channels Kids
EPIC TV & Penguin Present The Third Book Of The Devlok With Devdutt Pattanaik Series

Where did the name Radha come from? When did Christianity first come to India? What is the connection between sanskar and dharma? After the enormous success of the first two books in the ‘Devlok with Devdutt Pattanaik’ series, India’s favourite mythologist, Devdutt Pattanaik, is back with a third...

Television TV Channels Factual & Documentary
Banijay Asia and Salman Khan TV collaborates to create content for digital and tv

World’s largest independent content creation group, Banijay Group recently entered Indian & South East Asian market under the guidance of Deepak Dhar with an aim to produce content across genres. Banijay Asia &SK TV, which was launched few years back, come together to create novel and...

Television TV Channels GECs
DSport reaches 110 mn households in a year

DSport, the sports TV channel by Discovery Communications, has achieved the milestone of reaching 110 million households in India. The channel was launched on 6 February 2017 and achieved the milestone within one year of operations in India and has expanded its distribution across all DTH and...

Television TV Channels Sports
Star Suvarna to telecast 'Kannadada Kotyadhipati 2018' the Kannada version of 'Who wants to be a Millionaire' as part of its revamp

May 21, 2018: The third season of Kannadada Kotyadhipati, the Kannada version of ‘Who wants to be a Millionaire’, which sets the stage for a revamps of Star Suvarna, the Kannada GEC channel of Star Network will premiere in June’18. Since January 2018, the channel has gained viewership share in...

Television TV Channels Regional
Republic Network partners with CAF India to nurture the Culture of Giving amongst Indians as part of its first year celebration.

Republic TV, India’s number 1 English news channel for non-stop 53 weeks is celebrating its milestone first year anniversary in a unique and special way. Republic TV has partnered with Charities Aid Foundation (CAF) India, a not for profit organisation to fuel and accelerate the spirit of giving...

Television TV Channels News Broadcasting
Star spending up to Rs 2 cr on production per IPL match

MUMBAI: After having bought rights for almost all important sporting properties in India, Star India had the massive task to ensure that it sets a new benchmark for cricket. In February, it won the audio-visual production rights for IPL 2018, making it the first time that a broadcaster is...

Television TV Channels Sports
Watch Rani Mukerji’s ‘Dadasaheb Phalke Excellence Award’ winning performance in ‘Hichki’ only on Sony MAX

After garnering success at the box office and a heart-warming response from the audience, the Rani Mukerji starrer ‘Hichki’ is all set for its Worldwide Television Premiere only on Sony Pictures Networks’ number 1 Hindi movie channel, Sony MAX on Saturday, 26th March at 9pm. Directed by Siddharth...

Television TV Channels Movie Channels
World Television Premiere of Raid on Star Gold

This May, Star Gold to bring the World Television Premiere of Raid. Touted as first Bollywood project to be based on an Income Tax raid, this Ajay Devgn starrer hit will be showcased on 27th May 2018, Sunday at 1 PM on Star Gold.

Television TV Channels Movie Channels

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories