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Punjab cabinet approves entertainment tax on DTH, cable connections

Navjot Singh Sidhu told the cabinet that the nominal tax would ensure accountability on the part of cable operators

Press Trust of India  |  Chandigarh 

Photo: Shutterstock
Photo: Shutterstock

The cabinet, led by chief minister Captain Amarinder Singh, on Fridayy approved the levy of an by urban and rural local bodies on and local cable connections, an official spokesperson said today.

The proposes to bring a new legislation in this regard in the next session of the where it has a two-thirds majority.

These local bodies will be eligible to impose and collect a nominal of Rs 5 per connection and Rs 2 per local cable connection per month with the enactment of 'The Entertainments & Amusements Taxes (Levy & Collection by Local Bodies) Bill 2017', said the spokesperson.

Local Bodies minister told the cabinet that the nominal would ensure accountability on the part of cable operators.

With the new structure in place, the would be able to ask them to disclose details of connections, which they have so far been prone to hiding in order to evade tax, said Sidhu.

The move follows a proposal mooted by the local department, allowing all the urban local bodies and gram panchayats to levy such a However, no has been proposed for cinemas, multiplexes, amusement parks etc.

With nearly 16 lakh and 44 lakh in the state, the local bodies are expected to earn annual income of Rs 45-47 crore following the imposition of the tax, which is likely to mop up Rs 9.60 crore and Rs 36.96 crore respectively from the two segments.

Sidhu had been vociferously speaking against the "cable mafia" and pitching for level playing field while accusing the previous SAD-BJP regime of sheltering the private multi system operators in cable business.

After the introduction of GST with effect from July 1, 2017, being levied and collected by the state through the department of excise & taxation stands withdrawn.

The power of levying has now been conferred on the panchayats and municipalities through amendment in entry 62 of the State list in the seventh schedule of the Constitution of India.

First Published: Mon, October 16 2017. 23:09 IST