For entertainment sector, Budget ’08 is all of ennui

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The entertainment industry seems to be in despair following the Union Budget of 2008. None of its much-awaited demands or wish list has come about. Despite the grant of Rs 75 crore to the Indian Council of Cultural Relations and full exemption of customs duty on specific parts of set-top-boxes (SBTs), the industry feels let down.

Navin Shah, CEO, P9 Integrated, feels that the budget was disappointing with no major reference on the entertainment sector. “I was hoping that the entertainment tax, which is currently 33%, would have at least been reduced by 10% to ensure a better growth in the entertainment sector. In India, the producers' share is only one-third of the revenues, and a reduction in the entertainment tax would have helped the industry attract bigger investments globally as well," said Shah.

According to media analysts, the demands which topped the charts were reduction in import duty on SBTs used in direct-to-home and digital cable which will now result in reduced the cost of digitisation significantly. There were demands of removal of service tax on lease rentals on multiplexes also. Moreover, if easier funding norms were implemented, that would have further acknowledged the growth potential of the entertainment industry.

Indrani Mukerjea, founder and CEO, INX Media Pvt Ltd said, “I expected the budget to provide incentive for growth support via reduced corporate taxes and duties on equipment used by the various sections of the industry and to bridge the gap between analog and digital so as to speed up the digital revolution in India.”