HYDERABAD: Monthly cable television bills of householders is likely to rise significantly with the Municipal Corporation of Hyderabad almost finalising tenders towards collecting tax for using poles and trees by multi-system cable operators (MSOs) and cable operators (COs).

Though other MSOs have cried foul over MCH awarding contract to Hathway, which was the only agency to respond to the tender notice called earlier this month, officials point out that the dispute was only about the figure submitted by the agency (Rs. 1.57 crore). None have disputed the tax as such.

Agencies opposing the contract have only said more revenue could be expected if the contract is divided into 13 different zones. There are about 1.12 lakh poles under MCH jurisdiction since January last year after it took over maintenance of streetlights from A.P. Central Power Distribution Company Ltd (CPDCL).

Tax on each pole was calculated to be Rs. 140 and at an average, each pole is said to have five to 20 wires. With big time television companies also jumping into the fray, the Government has decided to intervene and a meeting to be chaired by the Principal Secretary of Municipal Administration and Urban Development S.P. Singh, will be held on Friday.

The MCH Commissioner, Commissioner of Commercial Taxes, Managing Director of APCPDCL and all contending cable television companies will be present to thrash out the issue. However, there are no doubts that the new levy will be passed on to the consumers.

Entertainment tax

While much noise has been made on the pole tax, the MCH had so far failed to collect entertainment tax due from the MSOs and COs running into several crores. The tax is Rs. 5 per connection per month.

Total amount due was calculated to be Rs. 5.4 crore from October 2000 to December 2003 and Rs. 7.75 crore from January 2003 to August 2005. Last year the MCH collected Rs. 21 lakh and this year it is Rs. 9 lakh thus far when the annual tax income was projected to be Rs. 3 crore from the estimated five-lakh connections in the twin cities.

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