Overburdened: Cable operators ask Sindh govt to abolish new tax

Demand that the cable industry be delared tax free for ten years.

KARACHI: Cable Operators Association of Pakistan (COAP) Chairman Khalid Arian has demanded that Sindh government immediately take back the newly imposed cable services tax “so that the COAP may continue to provide cheap and quality entertainment to consumers”.

Addressing a press conference at Karachi Press Club on Sunday, he also demanded the cable industry be declared tax-free.

He said the Sindh Board of Revenue (SBR) had imposed a new tax on cable operators and consumers despite the fact that the cable industry was already facing many difficulties in collecting their existing cable fees.

“We are already overburdened with taxes including Pakistan Electronic Media Regulatory Authority (Pemra) license fee, consumer fee and in-house CD channel fee,” he said, adding that Pemra also received 5% of their income.

He said apart from that, cable operators also paid millions to railway crossing and different civil institutions. “In this scenario, burden of the new tax imposed by the SBR, will have to be borne by the consumers,” he added.

Khalid Arain said in the current economic situation, people are not able to bear even Rs200 per month fee, which is the nominal amount charged by cable operators for years.

He said this ‘oppressive’ tax was also imposed by other provinces and cable operators across the country demanded that it should be taken back.

He said Pemra had instructed the cable operators to convert from analog to digital system by December 2015. “But in the current circumstances, such conversion demands huge investment which the cable operators cannot make if they are overburdened with taxes,” he said.

The COAP chief said all over the world, where cable operators have been facilitated by governments in adopting new technology. He demanded that the cable industry be declared tax free for ten years so that like film industry it might also get a chance to flourish.

Arain made an appeal to Pakistan People Party Co-Chairperson Asif Ali Zardari, Sindh Governor Dr Ishratul Ebad Khan, Sindh Chief Minister Qaim Ali Shah and others to abolish the newly imposed tax.

He also asked Pemra chief to play his role in declaring cable industry as tax-free. He said if the tax was not taken back, the COAP would stage protest and give a strike call.

Other office-bearers of the association including Gufran Mujtaba, Mairaj Khan, Saad Akhtar and Moinuddin were also present at the press conference.

Published in The Express Tribune, June 15^th, 2015.