Nearly 13,000 local cable operators (LCOs) from across the State have threatened to blackout telecast of various channels in protest against what they termed the attitude of master cable operators (MSOs) to fleece them by not passing on the benefit of reduction of tax liability following rolling out of GST.
At present, the cable operators who charge ₹200 to ₹250 per month for allowing to watch all channels, including pay channels, by an estimated 1.2 crore subscribers, are absorbing service tax of nearly 15% and 7% entertainment tax. Now instead of 22%, they are charged 18% GST.
“We didn’t collect 22% of service tax and entertainment tax from subscribers keeping in view their compulsions. However, the MSOs are asking us to increase monthly subscription to ₹300 so that we could pay more to them with the plea that they are ending up spending more due to increase in input cost,” Seemandhra Cable TV Operators’ Welfare Association president Pakki Diwakar told The Hindu on Wednesday.
He said in lieu of service tax and entertainment tax, they used to absorb ₹5 per connection. If the GST benefit was passed on to them, it would benefit the LCOs a lot.
The cable industry employs 50,000 workers.
“We had spent nearly ₹100 crore following damage caused to the cable lines and equipment. None had helped us at that time.
“Now we hope the TRAI or the government will come to our rescue in larger public interest,” he stated.