For the first time,the Gujarat government has proposed to levy an entertainment tax on Direct to Home (DTH) services available on television connections across the state. The proposed tax is Rs 200 per connection on an annual basis. Presenting the modified budgetary estimates for 2009-10 in the House on Tuesday,Finance Minister Vajubhai Vala said,At present,entertainment tax is being levied on cable TV,which is a source of entertainment for the poor and middle class people in urban as well as rural areas who pay this tax for the same. But no tax is levied on DTH services,which are generally used by the well-to-do people. This leads to injustice to the poor and middle class people,and also creates avoidable imbalance in the society. A large number of representations have been received (by the government) from cable TV operators regarding the lack of a level playing field. Considering all these factors,I propose to levy entertainment tax on DTH facility, Vala told the House. The modified budgetary estimates for the year 2009-10 show an overall surplus of Rs 53.76 crore,including Rs 6 crore that the government proposes to collect by levying entertainment tax on DTH services
