Urging the Finance Minister, Mr Pranab Mukherjee, to treat broadcasting as infrastructure industry, the Media and Entertainment industry on Friday sought reduction of various duties including service tax for the sector in the forthcoming Budget.

The Information and Broadcasting Minister, Ms Ambika Soni, led the industry delegation that consisted of film producers such as Mr Yash Chopra and Mr Ramesh Sippy, besides the FICCI Secretary-General, Mr Amit Mitra.

Among those demands put forth by the delegation include customs duty exemption on broadcast equipment including digital head-ends and some radio equipment.

The delegation also felt the imported film stock should be exempted from the countervailing duty, which is currently at 16 per cent.

“Such a move would help us combat piracy as producers would be able to make more prints at reduced costs,” said Mr Ramesh Sippy of the Film and Producers' Guild.

Rationalised duty structure on broadcast equipment and set top boxes will give a boost to the digitalisation of broadcast services. The delegation also suggested that VAT and service tax should not be levied simultaneously on copyright to avoid multiple-taxation.

“We have recommended for the removal of service tax for the media and entertainment industry,” said Mr Amit Mitra.

Besides demanding industry status for the broadcast services industry, the delegation also suggested that multiplex operators should be exempted from levy of service tax on property rentals till the GST is introduced. It also sought customs duty exemption on radio equipment used for stations in small towns.

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