Will watching movies on TV become cheaper? Cable TV industry has demand to reduce GST
For a long time, cable TV service has been an important part of our daily entertainment and information. Millions of people in the country watch movies, news and shows on TV in their homes every day, but till now 18% GST has been levied on TV cable service. Due to this tax, the TV bill becomes expensive. Amid this reason, this industry has demanded the government to reduce the 18% GST on cable TV to 5%. If the government accepts this demand, then it will directly affect your TV bill.
Cable TV industry's demand from the government
The All India Digital Cable Federation, the largest organization of digital cable operators in India, has emphasized that the cable TV industry is a huge employment and service sector in the country. This industry directly employs one million people.
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The Federation has written a letter to the government saying that the current 18% rate of GST is too high and increases the tax burden of consumers. Along with this, rising costs, rising prices of satellite channels and increasing competition from unregulated digital platforms have put this industry in financial crisis. To reduce this crisis, it is necessary to reduce the GST rate to 5%.
How will the reduction in GST benefit?
If the GST rate is reduced to 5%, then first of all the monthly bill of cable TV will be cheaper and the general public will get its benefit. On the other hand, this will strengthen the financial position of cable operators. MSOs and local operators, which are small businesses, will be able to run their capital better and invest in the expansion of digital broadband. The Digital India Mission will also benefit from this as it will enable internet and digital services to reach remote areas.
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Apart from this, this move will give equal opportunity to cable TV as compared to digital platforms which are now providing services at cheaper rates by availing subsidy or tax exemption.
Social and economic impact
AIDCF General Secretary Manoj P. Chhangani said that cable TV is not just a means of entertainment but it is also a medium to connect families in small towns and villages of India and to provide education and information. Even though reduction in GST will not only reduce the burden of consumers but will also protect the livelihood of lakhs of people of this sector.
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