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Gujarat govt proposes entertainment tax on DTH services

Indiantelevision.com Team

(1 July 2009 7:50 pm)

MUMBAI: In its first of its kind exercise, the Gujarat government has proposed to levy an entertainment tax on direct-to-home (DTH) services available on television connections across the state. The proposed tax is Rs 200 per connection on an annual basis.

Presenting the modified budgetary estimates for 2009-10 in the House yesterday, the state finance minister Vajubhai Vala said, "At present, entertainment tax is being levied on cable TV, which is a source of entertainment for the poor and middle-class people in urban as well as rural areas, but no tax is levied on DTH services that are generally used by the well-to-do people."

Elaborating, Vala said: "This leads to injustice to the poor and middle-class people and also creates avoidable imbalance in the society. The government has received a large number of representations from cable TV operators regarding the lack of a level playing field. Considering all these factors, I propose to levy entertainment tax on DTH facility."