Budget 2013: FICCI seeks rationalization of entertainment tax across states

NEW DELHI: In its pre-budget 2013 memorandum, Federation of Indian Chambers of Commerce and Industry ( FICCI) has asked the government to look into the matter of rationalisation of entertainment tax.

According to FICCI it has been suggested by the Empowered Group of Ministers that the entertainment tax be included in Goods and Services tax (GST). "However, pending the introduction of GST regime it is suggested that rationalization of rates of entertainment tax across various states at a uniform level should be encouraged by central government," said FICCI.

Given that under the Digital Access System (DAS) regime there will be full transparency; there is a need to lower the percentage or lump sum amount of entertainment Tax, as the case may be for the DAS areas, added FICCI.

FICCI feels that the revenue jump on account of entertainment tax will be 5 to 7 times because of associated transparency under which the complete count of subscribers would be available.

"The scheme for waiver of entertainment tax by state governments should be considered for a period of 5 years for cable networks migrating from analogue to digital so as to incentivize & promote digitalization," FICCI added.