New tax regime in place for cable TVoperators

Rajmeet Singh

Tribune News Service

Chandigarh, October 16

Local Bodies Minister Navjot Singh Sidhu today prevailed upon Chief Minister Capt Amarinder Singh to get Cabinet nod for slashing entertainment tax on direct-to-home (DTH) connections and levying it on local cable connections.

The move is expected to help the Local Bodies Department corner the cable mafia over tax evasion and bring on record the connections of Fastway Transmissions Pvt Limited, a company which Sidhu claims enjoyed patronage of the then Akali-BJP government.

Sidhu had earlier tried repeatedly to table the agenda, but it was deferred on the plea that more homework needed to be done on the “politically sensitive” issue. In August, Sidhu has asked the CM’s office to take a call on the recovery of alleged tax evasion of Rs 20,000 crore by Fastway.

The government would have to bring in an ordinance to make it a law till the legislation is approved in the next session of the Vidhan Sabha.

The Cabinet nod would enable the department to levy entertainment tax of Rs 5 (down from Rs 60) per DTH connection and Rs 2 per local cable connection in urban and rural areas by amending The Punjab Entertainments & Amusements Taxes (Levy & Collection by Local Bodies) Act 2017, which will replace the earlier entertainment tax system.

“This move will provide a level playing field for DTH operations, which were monopolised by the cable mafia,” Sidhu said.

The amendment would bring down the revenue from Rs 52 crore to Rs 47 crore. The government plans to rein in private operators to provide WiFi internet connections at cheaper rates.

No entertainment tax has been proposed for cinemas, multiplexes, amusement parks and other places providing facilities for entertainment. There are about 16 lakh DTH and 44 lakh cable connections in the state.

Under the GST, the power of levying entertainment tax has been conferred on panchayats and municipalities through an amendment in Entry 62 of the State List in the 7th Schedule of the Constitution.

During the Cabinet meeting, Sidhu also sought prompt release of funds to the department, pointing out that the delay was hampering developments works.