India | Posted on Jul 11, 2007 at 11:25pm IST

Govt decides not to impose tax on TV sets

CNN-IBN

New Delhi: Sources have told CNN-IBN that the Government will not impose a proposed licence fee on the purchase of television sets. A Group of Ministers had proposed to impose a levy of Rs 500.

The Government was considering imposing a recurring annual 'licence fee' for each television set. The levy was to be anywhere between five to 10 per cent -- Rs 500 for each colour television set and Rs 200 for a black and white television sets.

Additionally, private channels would have had to pay five per cent of their gross revenue to Prasar Bharati as a public broadcast fee.

This new tax was to be a bailout measure for the cash-strapped Prasar Bharati and would have fetched the Government's white elephant close to Rs 900 crore every year.

Incidentally, Prasar Bharati needs Rs 3,000 crore each year for operations but its revenues fall short by almost half that amount.

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