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No law to tax DTH, Delhi government incurring loss

No law to tax DTH, Delhi government incurring loss
PTI
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First Published: Thu, Apr 26 2007. 11 29 AM IST
Updated: Thu, Apr 26 2007. 11 29 AM IST
New Delhi: In the absence of any legislation to levy entertainment tax on the Direct-to-Home (DTH) service providers in the city, Delhi government is losing approximately Rs 25-30 lakhs per month.
Over one lakh households are availing DTH services in the capital presently.
However, while Multi-system Operators (MSOs) providing Conditional Access System (CAS) are shelling out Rs20 per Set Top Box (STB) as tax to the government, DTH operators do not fall under the tax net.
“The need to levy tax on DTH services was felt when it was found that their penetration has increased tremendously over the last six months,” a senior official told PTI here.
It was in December last that the DTH operators started making their presence felt to compete with CAS which has been made mandatory in South Delhi.
Despite huge loss to the exchequer every month, the cabinet is yet to give a nod to a proposal to tax DTH operators.
“Now even if it is approved by the Cabinet, it will get legal sanction only if it is passed by the Assembly. Now the next session is likely to held only in August. By that time we will lose a lot of money,” the official said.
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First Published: Thu, Apr 26 2007. 11 29 AM IST