Southern States - Karnataka-Bangalore   

Cable TV operators call off strike

By Our Staff Reporter

BANGALORE April 25. Cable TV programmes resumed on Friday following talks between cable TV operators, multi-system operators (MSOs), and the Department of Commercial Taxes.

Cable TV operators and MSOs were protesting against the increase in taxes by the Union and State governments. These included the 150 per cent increase in the entertainment tax on cable TV operators announced by the State Government (from Rs. 3000 to Rs. 7500).

Cable TV operations resumed after the Commissioner of Taxes, Ashok Kumar Manoli, agreed to forward to the Government in two days, a memorandum submitted by the Joint Action Committee of cable TV operators. However, industry sources said that there was no assurance from Mr. Manoli regarding any proposal to reduce taxes.

In addition to the increase in entertainment tax, the State Government plans to impose an additional tax on the MSOs. Cable TV operators, the primary customers of MSOs, fear that the latter will pass on the burden to them. The Union Government has hiked the service tax on cable operators from 5 per cent to 8 per cent.

Operators under various banners, including the Karnataka State Cable TV Operators' Association and the Karnataka Cable TV Chamber of Commerce, are demanding that there should be no increase in taxes until the conditional access system (CAS) is implemented. Under the CAS, an operator can choose between paying a composite tax of Rs. 7,800, or taxes based on the number of connections, according to cable TV operators.

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