Slight increase in Entertainment Duty target despite cable TV digitisation

Despite digitisation of cable TV, State

raises revenue target by Rs 30 cr only

* Some feel that the target is too low considering tremendous rise in number of cable TV connections reported, while others feel target revision is ‘realistic’
* While Mumbai’s target has been raised by Rs 1 crore only, that of Nagpur has been increased by Rs 1.75 crore

By Kartik Lokhande
Prior to digitisation of cable television, there was an occasion when target for revision of entertainment duty collection for Nagpur Division alone was revised by Rs 13 crore in a year. In the first year after digitisation of cable TV, however, Nagpur Division’s target has been revised by Rs 1.75 crore only. Same is the case with other major cities in Maharashtra that saw digitisation of cable TV.

The Hitavada CityLine, June 14, 2013

Prior to digitisation of cable TV or installation of set top boxes (STBs), number of cable TV connections in Nagpur district were 88,000 only. The target for collection of entertainment duty in 2012-13 given to district administration was Rs 13 crore. By the end of the financial year, the administration could collect entertainment duty of Rs 14.0977 crore, thus exceeding the target. But, the collection included entertainment duty from Nagpur urban as well as rural areas.
Interestingly, March 31, 2013, was also the deadline for installation of STBs. After expiry of deadline, number of STBs installed were 3.34 lakh! In effect, there was over three times rise in number of cable TV connections reported earlier. Considering this, one can expect revenue from entertainment duty to go up. However, Maharashtra Government has increased the target marginally to Rs 14 crore for Nagpur district as a whole (including urban and rural areas). Compared to revenue collection of Rs 14.0977 crore in 2012-13, the target for entertainment duty collection for 2013-14 is actually Rs 9,77,000 lesser!
But then, Nagpur is not the only case. In fact, for the entire state also, there has been marginal increase in target for entertainment duty collection. In 2012-13, the revenue target in this respect was Rs 564.03 crore. As against this, actual collection of the duty was Rs 599.4894 crore. Compared to this, the target for 2013-14 is only Rs 595.26 crore. In simple terms, the target has been scaled down compared to actual collection last year. According to sources, target should have been higher considering rise in number of cable TV connections reported.
“It appears that the Government is expecting dip in entertainment duty collection despite rise in reporting of number of cable TV connections,” said an official from Mumbai. However, he said, the targets have been set at this level considering the ‘pressure’ reported by District Collectors across the State.
Another officer pointed out that revenue collection target for Mumbai was raised by only Rs 1 crore while that of Nagpur was increased by Rs 1.75 crore. “How is it possible? Mumbai, undoubtedly, has more cable TV connections than Nagpur. Still, its revenue target is increased only marginally. Scaling down of targets is nothing but a ploy to hide irregularities in digitisation of cable TV especially in Mumbai and Pune,” said the officer. According to him, if targets would have been revised considering increase in number of cable TV connections post-digitisation, State would have got an additional revenue of at least around Rs 1,200 crore.
Meanwhile, another source in Revenue Department said that the target set was ‘realistic’. Previously, he said, targets were set without considering ground realities. This time, he added, a wise counsel appears to have prevailed while fixing the target for entertainment duty collection. However, he said, the raised targets for Mumbai Suburbs and Pune were misleading. Mumbai Suburbs included Navi Mumbai, Kalyan-Dombivali, and Mira-Bhayander. Similarly, Pune included Pimpri-Chinchwad. Thus, the marginal raise of Rs 1 crore in case of Mumbai Suburbs was not in proportion to increase in cable TV connections. Similar was the case of Pune.
It remains to be seen if revised targets are surpassed once again. If yes, to what extent are targets exceeded, will be an interesting observation to make at the end of this financial year.

Entertainment duty collection and target for major cities
-----------------------------------------------------------------------
City                      Duty collection             Target for
                             in 2012-13                     2013-14
-----------------------------------------------------------------------
Mumbai               Rs 88.0994 cr               Rs 89.00 cr
Mumbai Suburbs Rs 149.2304 cr             Rs 150.00 cr
Thane                   Rs 94.1989 cr               Rs 95.00 cr
Pune                     Rs 110.7566 cr             Rs 112.00 cr
Jalgaon                Rs 7.5973 cr                 Rs 6.92 cr
Solapur                Rs 9.6648 cr                 Rs 9.67 cr
Nashik                 Rs 17.4904 cr               Rs 17.46 cr
Aurangabad        Rs 16.4443 cr                Rs 13.00 cr
Amravati             Rs 4.2986 cr                  Rs 5.00 cr
Nagpur                Rs 14.0977 cr                Rs 14.00 cr
----------------------------------------------------------------------

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