CHANDIGARH: In order to bring the cable operators in the state under the ambit of the government and to increase the cash-strapped government’s revenue, Punjab’s Local Bodies Department is likely to put a tax of Rs 60 per cable connection in the state.
Punjab Local Bodies Minister Navjot Singh Sidhu has been claiming that there are around 8,000 cable operators in the state. Of these, 6,000 are directly and 1,500 indirectly under Fastway—the biggest television transmission multi-system operator in the state. Incidentally, this allegedly has the patronage of the Badals.
On paper, the company shows that it has only 1,500 operators. Sidhu also claims that there are around 80 lakh cable connections in the state, but only 1.25 lakh are on paper. Thus tax evasion worth `684 crore is taking place annually.
Fastway CEO Piyush Mahajan says that the company has been regularly paying entertainment tax and there are no dues. Also the set-top boxes installed by the company are on the basis of refundable security.
Shiromani Akali Dal president and former deputy chief minister Sukhbir Singh Badal has also denied any business or other interest in Fastway.
The previous SAD-BJP Government had amended the Entertainment Duty Act, in 2010. Prior to that, there was parity between DTH and cable operators. Both had to pay 10 per cent per connection. Post-amendment, DTH operators kept paying the old rates, while cable operators had to pay just Rs 15,000 per operator.
Now the department is proposing that cable operators should pay per connection. The agenda will be tabled at the next Cabinet meeting on August 25 and is likely to be cleared. Also, the implementation of the GST has made cinema tickets expensive by 28 per cent. Despite this, the state local bodies department is mulling levying an extra 12 per cent.