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Brace for more cable fee

WITH THE State Government deciding to increase the entertainment tax on cable operators from Rs 10 per consumer (connection) to Rs 20, cable TV connections in the urban areas of State are set to be dearer. This tax hike is expected to impact the fees collected by the cable operators.

india Updated: Mar 24, 2006 12:33 IST

WITH THE State Government deciding to increase the entertainment tax on cable operators from Rs 10 per consumer (connection) to Rs 20, cable TV connections in the urban areas of State are set to be dearer. This tax hike is expected to impact the fees collected by the cable operators.

The tax-hike decision was formalised today with the Assembly passing the MP Entertainment Tax and Advertisement Tax (Amendment) Bill 2006 by voice vote. The hike would be implemented in 48 urban centres in the State, Industries and Commercial Taxes Minister Babulal Gaur announced while replying to the discussion on the bill.

The Minister said the hike in the entertainment tax would help the State Government collect an additional revenue of Rs 5 crore per year.

Since the cable operators collect fees to the extent of Rs 300 per connection in the urban areas, they should not find it difficult to pay the hiked entertainment tax, he said.

However, opposition members including Rajendra Kumar Singh and Dr Govind Singh of the Congress said the entertainment tax hike would affect the consumers as the cable operators would charge them more. While opposing the amendment Bill, the members said that even the provision of 25 per cent hike after every two years would prove burdensome for the consumers and this proposed hike should be restricted to 10 per cent.

Gaur, in his reply, said there are about 4.20 lakh cable consumers in the State and presently a revenue of Rs 4.77 crore is collected from them in the form of entertainment tax per year. The hike would bring Rs 5 crore more to the government coffers.

First Published: Mar 24, 2006 12:33 IST