State government decides to hike Entertainment Tax
December, 20th 2010
To augment its revenue resources, the state government has invoked its Entertainment Tax Act, 1984 and decided to tax users of Direct to Home (DTH) services. The tax imposed would be 15% of the cost of various grades of DTH services subscribed by customers.
The government will not impose any additional economic burden on the users of cable services.
Deputy CM Sushil Kumar Modi said on Sunday that the state government, having secured the cabinet's approval, has issued the relevant orders for an amendment in section 19 (a)2 of the 1984 Entertainment Tax Act to collect new DTH tax.
According to him, as per the old Act, the government used to collect Rs 15 as entertainment tax for every DTH and cable connection.
However, in line with the amended Act, now the DTH tax levied would be 15% of the total cost of various grades of DTH services offered. Modi said that the move would in no way affect the users of cable services, while it would not substantially pinch the DTH users in simple packages.
The move to tax the users of special DTH packages has been made on the pattern of some states such as Uttar Pradesh and Rajasthan. He said that the earlier rate of Rs 15 on every DTH services user was neither justified nor rational.
The tax would be collected at the new rate every month from DTH service providers for the special packages offered. The resources so raised would be utilised for the implementation of developmental schemes, Modi said.