NEW DELHI: Direct-to-home (DTH) services will be charged 30 per cent entertainment tax in the state of Tamil Nadu, a step taken to support the state-floated Arasu Cable to counter Sun Network.

The state has also decided to impose a 25 per cent entertainment tax on Indian Premier League (IPL) cricket being played in Chennai.

The Tamil Nadu assembly today passed a Bill to impose entertainment tax on DTH and IPL.

The Bill in this regard was introduced in the state assembly today by state commercial taxes minister SS Krishnamurthy and passed unanimously later in the day.

According to the Bill, the DTH service providers, who transmit private satellite channels directly to consumers‘ house in the state, will be imposed 30 per cent as entertainment tax on overall price, excluding the service tax.
 
A total of 25 per cent will be levied on IPL as entertainment tax on the total sum of cash including the tax amount paid, for getting permission to hold the T20 matches (as part of the IPL) in Chennai.

There are no specifications on imposing such taxes on DTH and IPL under the current Tamil Nadu Entertainment Tax Act. However, the state government claimed that this has been done in many states in the country.

The Bill passed on the last day of its sitting also amends the Tamil Nadu Entertainment Tax 1939 to facilitate the implementation of the government‘s decision.

It may be recalled that the State government had rolled out cable TV operations through Arasu Cable Corporation on 2 September in association with thousands of cable operators at affordable rates for the consumers.

The decision to impose 30 per cent entertainment tax on DTH service providers is expected to help Arasu Cable Corporation‘s activities as the DTH consumers may have to end up paying more.