DTH, Cable TV to cost more in Delhi as AAP increases entertainment tax

Arvind Kejriwal-led Aam Aadmi Party has increased tax on direct-to-home service providers as well as cable companies in New Delhi.

The entertainment tax has been increased from 20 to 40%, meaning that consumers will have to pay more for cable and DTH services.

“The recent announcement of doubling of entertainment tax on cable TV and DTH services made by the Aam Admi Party (AAP) government seems unfair and illogical. DTH as a platform is considered critical to the citizen’s right to information, news, education and entertainment. The sector is already saddled with a high tax, where 33 per cent of revenues are taxed between the Centre and state,” said Anil Khera, president of DTH Association of India, according to Business Standard.

The entertainment tax hike is more complicated for the cable TV industry as the multi-system operators will have to negotiate with the local cable companies to collect the increased subscription fee from the end-consumers.