Commenting on the expectations of the industry from the budget this time, Tarun Katial, Chief Operating Officer, BIG 92.7 FM said that they expect reduction in Service Tax, especially given that the Radio industry is still in its infancy and has great employment and media opportunities in the semi-urban and rural markets. In addition lowering of income tax rates is needed for the Radio industry.
Talking about the wish list for the budget 2008, he mentioned 3 items. First is 8 year tax holiday to FM Radio Operators. Radio Broadcasting should be removed from the ambit of Service Tax, just like print media. He said that Fringe Benefit Tax is a non deductible expense. If a concession in the qualifying rates is provided to radio operators it would really provide a competitive advantage and a boost to the Radio Industry.
He also mentioned that print media is kept outside the ambit of service tax and the same benefit should be extended to radio as well, if we want to establish a level playing field. If not, the local advantage extended by radio as a medium will diminish. Additionally, Radio Operators are required to pay license fees on 4% of Gross Revenues wherein, Gross Revenues include Service Tax, resulting in double taxation.
A further increase in Service Tax and Income Tax rates is something they are clearly not looking forward to. In addition, a levy of new surcharges will be another burden to the operators, he added. When asked that what would be the three key initiatives you would take if you were the FM Minister? He said that he would recommend increased investment in education and infrastructure and provide greater incentives to the service sector.
