Indian media industry gives thumbs up to GST despite minor concerns

MUMBAI: Former Finance Minister of India P. Chidambaram dubbed the move "good sense triumphed" while commenting on the Goods and Services Tax (GST) Bill that was okayed earlier in the week by the Indian Parliament. And, probably, it is a good move, though lot of fine-tuning still needs to be done and Indian industry is still calculating the pros and cons.

But a seven-hour debate in the Upper House (Rajya Sabha) on Wednesday is nothing compared to the discussions on the issue that have been going on for over a decade in India during which time several Finance Ministers have come and gone pitching in for tax reforms that have been mired in political discussions and fights.

Now that the Parliament has given the green signal to GST to be ushered in the country the ifs and whys still need answering leading to more questions like ‘what’ and ‘how’ because the rate of taxation under GST regime is still to be firmed up though 18 per cent is an indicative figure that is being bandied around in political and industry circles.

Here are a few reactions from the media and entertainment industry where execs are still trying to read the fine prints of political-speak.

Minister of Information and Broadcasting (MIB) M Venkaiah Naidu termed the passage of GST Bill as “historic” adding that “it’s a victory of people” as “good days” beckon the country.

MIB Junior Minister Rajyavardhan Rathore also said that it was a historic day for India and tweeted “a new era is about to begin as uniformity across markets in India would pave way for unity in diversity”.

ZEEL, MD and CEO Punit Goenka:  GST will certainly bring in uniformity across businesses in the media sector. Especially for the film studios who can now lower their costs. Multiplex chains will also benefit a lot with uniformed taxes, resulting into reduction of the average ticket prices!

Colors TV CEO & Advertising Club of India President Raj Nayak: I think it (proposition of GST) is the best thing that has happened to our country. I must congratulate the Finance Minister and leaders of all political parties for setting aside differences for a common purpose, which will help in the progress of the country. As Prime Minister Narendra Modi described it is `the best example of cooperative federalism.’ The passage of the Bill, along with a good monsoon, will usher in an overall positive business sentiment. I see this translating into advertising spends seeing an upward trend in the coming months, which will be good for broadcasting sector.

Publicis India -South Asia CEO & AAAI President Nakul Chopra: Everyone is hopeful that in the long run this will benefit our economy. While right now we are concerned about its implications on our (advertising) industry as we are a multi-locational service providers. If GST positively impacts our client, it would eventually benefit us as well. Though there are some legitimate concerns that the advertising industry has over GST, we will try to address them as an association.

Videocon d2h  CEO Anil Khera: GST is a welcome step. It will unify the indirect tax administration in India and help the country in two ways. First, it will simplify (the tax regime) and make it easy for the consumers to understand their tax split up. Second, it will significantly improve the ease of doing business in India. As a DTH operator, GST will help us to be more efficient in our business.

Travelxp and  Media Worldwide CEO Prashanth Chothani: There won't be much impact (on the broadcasters’ ad revenues). The current rate that stands at 15 percent may increase to 18 percent. This might mean that the advertising cost will go up but advertising is directly related to consumer needs. If people have money to spend and they are consuming products,  brands will market and advertise.

From the reactions it seems that the media and entertainment industry, by and large, has reacted positively to the proposed tax reforms. As it is in all such cases there are some creases, but the media and entertainment industry is willing to look at the brighter side of GST and the promised economic growth.


Latest Reads
US$ 4.5 bn expected from IPL rights; SC recommends accounts scrutiny

The Supreme Court on Friday froze all financial transactions between the BCCI and state cricket associations by directing the apex body not to disburse any funds till it resolves to abide by the Justice RM Lodha panel recommendations on reforms by 3 December . The top court ordered that none of...

Television TV Channels Sports
TVS Tyres is co-presenter for Asian Champions Trophy 2016

Continuing its strong connect with sports, TVS Tyres has associated with Asian Champions Trophy 2016 by becoming the co-presenter. The Asian Champions Trophy is one of the premier hockey tournaments, a much sought after annual international competition promising some great hockey action. This...

Television TV Channels Sports
Q2-17: Zee Learn declares maiden interim dividend

The board of directors of the Essel group’s education company Zee Learn Limited (ZLL) have declared a first time ever dividend of 5 percent per equity share of Re 1 each for the quarter ended 30 September 2016 (Q2-17, current quarter).

Television TV Channels Factual & Documentary
Whether BARC action can stop unethical practices?

Whether businesses and industries practice their art of selling fairly although they have 'Fair Practices' training during the academic courses, workshops and several ISO and other certifications? There seems to be the fear of the lawman, and not the law in India.

Television TV Channels Viewership
TV Superhighway: beIN, Yaddo, AfricaXP have joined us, says Magine CEO Ambuj Goyal

CANNES; Magine has secured partnerships with four of the industry’s most exciting sports, documentary and entertainment content providers. Partnerships with beIN, the international media group and owner of MIRAMAX; Yaddo, the new documentary streaming service headed up by former head of The BBC’s...

Television TV Channels Factual & Documentary
Colors emerges strong on strength of Naagin I & II

MUMBAI: One of the top rated shows Naagin Season 2 helped Colors reach a top-ranking position.

Television TV Channels GECs
Pakistan Broadcasters Association to oppose PEMRA Indian content ban

MUMBAI: The Pakistan Electronic Media Regulatory Authority (PEMRA) shocked both Pakistan and Indian broadcasters when it issued an order blanking out  all Indian content from Pakistan’s television channels on 19 October.

Television TV Channels GECs
Sony Pix to telecast 'Jurassic World' on 22 October

Sony Pix will take the viewers on a thrilling, adventurous journey with cloned dinosaurs in their Billion Dollar Premiere property. The channel plans to air Jurassic World on 22 October at 1 pm and 9 pm.

Television TV Channels English Entertainment
Sony AXN scripts deal with Pinewood; buys stake in SVOD service Hopster

Folks at Sony Pictures Television (SPT) are in a celebratory mood. Not only has it signed a six-series deal with Pinewood Television but has also acquired a minority stake in the London-based video subscription service for kids content - Hopster.

Television TV Channels English Entertainment

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories