Cable digitisaton to increase tax collection manifold: Survey

Survey tabled by FM in Parliament shows that there is already two to three fold increase in entertainment tax collections

Both the Centre and state governments are set to benefit from the digitisation of cable television in India as it would lead to manifold increase in tax collection, says the Economic Survey for 2013-14.

"Preliminary data from the state governments show that there is already two to three fold increase in entertainment tax collections," said the Survey tabled by Finance Minister Arun Jaitley in Parliament today.

It is estimated that state governments and the Government of India stand to gain significantly, as the transparency in the subscriber base through digitisation would lead to manifold increase in the tax collection, the survey added.

The government has set a deadline of December 31, 2014 to completely digitise cable TV delivery in India and switch off the analogue mode that has been in service for a long time.

According to the survey, digitisation is also creating an opportunity for the domestic electronics industry to produce set-top-boxes (STB) required for it and generate employment opportunities.

"There is a good opportunity for local manufacturing of STBs, leading to employment generation," it added.

In the first two phases of digitisation drives in the metros and 36 cities, including state capitals, more than three crore STBs have been installed.

The other mediums of cable TV viewing such as direct-to- home (DTH) is adding one million customers every year, it said, adding the government has also allowed two operators to provide services through headend-in-the-sky (HITS) system.

The effect of digitisation is also visible on the film exhibition, where 95 of the big screens are now digitalised and the sector is "poised for buoyant growth in the long run".

The survey said media and entertainment industry, which includes mediums such as TV, radio, cinema, print, music and animation, have experienced 'unprecedented growth' in the last two decades and are expected to touch Rs 1,78,600 crore by 2018.

According to a report by FICCI-KPMG, the Indian media and entertainment industry grew by 11.8 per cent to Rs 91,800 crore in 2013 from Rs 82,100 crore in 2012 and is projected to grow at a CAGR of 14.2 per cent to reach Rs 1,78,600 crore by 2018, the survey said.

India has one of the largest broadcasting industry with 16.1 crore TV households. Presently around 800 satellite channels, 88 teleports, 245 FM radio channels and 170 community radios are operating in the country.

The survey, however, said piracy still remained a big challenge for the film industry and that the government has approved an anti-piracy plan to combat it through legal methods besides creating public awareness through multi media campaigns.