Will viewers be taxed on sale of telecast rights? Decision awaited

  • Prajakta Chavan, Hindustan Times, Mumbai
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  • Updated: Mar 26, 2011 01:00 IST

Even as the state government has proposed 5% tax on sale of telecasting rights on various entertainment and sports events in its budget, the Direct-to-Home (DTH) service providers and television channels are still studying its legal aspects.

They are yet to decide whether the tax burden should be passed on to the subscribers.

After state finance minister Ajit Pawar had proposed to charge 5% tax on telecasting rights of various entertainment and sports events in his budget speech, consumers feel they would have to ultimately pay the tax.

“The leaders in the industry are still discussing and studying the legal aspects of the same,” said an official from a DTH service provider requesting anonymity. “The DTH companies will have to check legal aspects because our subscription fee structure needs to be cleared by the regulatory authority.”

But cable operators maintain that they would not hike their rates.

“We don’t have anything to do with copyrights, we just pass on the service to customers. So, as of now, our charges for both viewers and advertisers will remain the same,”  said Ashwin Khilani, owner of Blue Diamond Cable and Advertising in Ghatkopar (West).


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