As the Ministry of Information and Broadcasting (MIB) inches closer to finalizing the terms and conditions of the new direct-to-home (DTH) licence, industry leader Dish TV has approached the Telecom Regulatory Authority of India (TRAI) highlighting the issues faced by DTH players due to high licence fee and lack of level playing field.
In his letter to the TRAI chairman, Jawahar Goel, chairman and managing director of Dish TV India, has pointed out that the DTH industry is running into heavy losses due to multiple taxes. Additionally, Goel has sought support from the ministry and parity in treatment vis-a-vis the competitors to minimize losses.
The government had in 2008 said that licence fee for DTH operators shall be charged at 6 percent of the gross revenues. However, Trai had, on July 23, 2014, recommended that the licence fee payable by the DTH operators should be 8 percent of the adjusted gross revenue (AGR), which will be calculated by excluding service tax, entertainment tax and sales tax /VAT actually paid to the government.—DNA India