Andhra Pradesh - Hyderabad   

Cable networks need to pay crores as tax

Y. Mallikarjun

Local bodies have not collected Rs. 21.43 crores from them as entertainment tax in three years

HYDERABAD: At a time when local bodies have been clamouring for more powers, an instance wherein the municipalities/corporations and gram panchayats have failed to exercise their authority to collect entertainment tax for the last three years has come to light.

Entertainment tax to the tune of Rs.21.43 crores remained uncollected from January 2003 to June 2006 by Municipal Commissioners and Executive Officers of gram panchayats from Master Cable Operators in 14 districts, including the State capital, a probe by the officials of the Vigilance and Enforcement Department has revealed.

An amendment to the Andhra Pradesh Entertainment Tax Act in 2003 made the MCOs liable to pay the tax. Government issued GO MS No.708 (Revenue) appointing Commissioners of Municipalities/ Corporations and Executive Officers of gram panchayats Entertainment Tax Officers and vested them with powers to collect the tax from cable TV networks within their respective jurisdictions. According to sources, the probe found that the EOs and the Commissioners had neither evinced interest to collect taxes nor did the groundwork to identify the operators and the number of connections issued by them. So, local bodies were deprived of finances and "undue burden" was caused on the State exchequer.

Survey ordered

The Vigilance Department had asked the Government to instruct Municipal Commissioners and the EOs of gram panchayats to conduct a survey of the MCOs and ascertain the number of connections issued by them to assess ET .

The sources said that the uncollected amount for the period might go up to Rs.50 crores since details from other districts were yet to be received.

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