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Updated: March 20, 2012 12:19 IST

Corpn. plans to increase revenue by taxing cable operators

Karthik Madhavan
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Television cables tied to a pole in the city. Photo: K. Ananthan
Television cables tied to a pole in the city. Photo: K. Ananthan

‘Civic body keen on collecting all tax dues'

Coimbatore Corporation has planned to widen tax net and strengthen tax collection to mobilise revenue, this time by asking cable TV operators to pay taxes.

A recent release by the civic body says that the Local Cable Operators (LCOs) should pay Rs. 6,300 for every km of cable that runs along Corporation roads.

This is as per the Tamil Nadu Municipalities T.V. Cable Installation Regulation Rules, 2000.

A rough calculation reveals that the Corporation will get between Rs. 30 lakh and Rs. 40 lakh a year, assuming that the LCOs have cables running along for at least 50 per cent of the Corporation road length of 1,150 km.

The city has a little over 1,400 LCOs, who will have to pay the amount at the earliest.

Corporation sources say that once they get the list of LCOs from the Tamil Nadu Cable TV Corporation officials, they will start issuing notices, seeking the length of their cables that run alongside Corporation roads. And, thereafter carryout inspection to ensure that the length stated is correct.

The sources also say that they are not seeking arrears since the Rules came into existence in 2000 because the LCOs started operations only recently, after the Tamil Nadu Arasu Cable TV Corporation started operations.

Notice issued

For the 11 years – from 2000 to 2011 – the Corporation has issued notice to a private multi-system operator, charging him with not declaring the real length of the cable they have laid and thus, causing revenue loss.

The sources say that the civic body has issued four notices, from the North, East, South and West zones, seeking the dues.

The operators approached the court, obtained stay as well as interim injunction in October 2011, which the civic body is trying to vacate.

Once the Madras High Court vacates the stay, the Corporation will collect the dues from the MSO.

Commissioner T.K. Ponnusamy says that the civic body was keen on collecting all tax dues to increase its financial strength.

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