Union Budget 2023-24 Expectation: Media and entertainment sector's wishlist this year

The day of the Union Budget 2023-24 announcement has almost arrived. The presentation is scheduled to take place on 1 February and Indian citizens are already anticipating big changes this year. The country’s media and entertainment sector is also expecting the upcoming Budget will consider some amendments to the current rules. The media and entertainment industry of India was valued at over Rs 1.6 trillion in 2021, according to Statista. Recovering from the adverse impact of the pandemic, the industry grew by more than 16 per cent between 2020 and 2021. Television made up the highest share, followed by digital and print media.

Here are some of the key expectations of the media and entertainment sector from this year’s Budget:

Support to the broadcast industry

The broadcast industry expects to get the support of policymakers and regulators to address some of the problems that it faces like the New Tariff Order and piracy. The sector is anticipating light-touch regulation which is going to encourage newer and growing areas like over-the-top (OTT) platforms.

GST rationalisation for the radio sector

It is expected that this year’s budget will have Goods and Services Tax (GST) rationalisation for the radio sector. This can allow the audience base to grow, as well as aid the integration of technology and digitisation across remote areas.

Progressive tax structure for VDA

Taxation on Virtual Digital Assets (VDA) has caused a shift in trade volumes to foreign centralised virtual digital asset exchanges from domestic ones. The industry suggests that a progressive tax structure that is able to restore consumer sentiments and boost revenues should be considered. The taxability of VDA is dependent on its location. Clear rules to determine the location of VDA would help in lowering any potential litigation. The sector believes that relaxation in the withholding tax rates applicable to non-theatrical rights will help them manage their working capital better.

Clarity in the taxation model for the online gaming industry

The online gaming industry needs clarity regarding its taxation model. The industry also expects the government to clearly state out other aspects like the tax on platform fees or gross gaming revenue (GGR). The gaming industry also wants regulatory clarity in the sector.

Granting infrastructure status to the media industry

The media industry wants to be granted infrastructure status. This is going to make it easy for the industry to get financial credits and avail of tax incentives from the government.

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