More than three years after the cable TV operators switched from the analogue to digital transmission system, municipal authorities have not been able to collect tax arrears since there is no clear picture of how many households have the connection in Puducherry.
Though the cable TV sector offers a good source of revenue to local bodies, tax arrears have been mounting with operators showing lesser number of customers than the actual figure. While on the one hand, the government is complaining of paucity of funds, on the other the revenue that should be available to the cash-starved local bodies is measly.
A survey conducted by the authorities in 2010 revealed that there were as many as 71,000 cable TV connections within the limits of Puducherry and Oulgaret municipalities. But the operators claim that there are only 17,600 connections in Puducherry and Oulgaret, which together have a population of 5.5 lakh as per the 2011 census.
The cable operators have not submitted the accurate records and numbers of their connections with three multi system operators (MSOs) in Puducherry, according to sources.
A senior official said, “The arrears of revenue even from three MSOs catering for 17,600 connections has been mounting since the past few years. The government is aware that cable TV operators have been defaulting on taxes by fudging the number of connections. In some cases, the officials disconnected the connections and seized the equipment.”
When the authorities initiated steps to collect the arrears, the Cable TV operators moved the Madras High Court in a bid to restrain the government from going ahead with the move.
‘Provisions too fragile’
“Cable TV is an important segment in the whole revenue picture of Puducherry but the statutory provisions are too fragile to enable the authorities to go ahead and crack the whip,” the official said.
Widespread usage: A government survey conducted in 2010 revealed that there were as many as 71,000 cable TV connections within the limits of Puducherry and Oulgaret municipalities.
There is hardly any household without a cable TV connection in Puducherry. It is mandatory for any cable operator to pay taxes against the total number of connections. However, it has been noticed that many operators fail to pay taxes every year to the municipalities.
The operators fix the rates as per their whims and fancies for urban, semi-urban and rural areas and have submitted incorrect information on the number of connections to the authorities.
Amendments needed
There should be an amendment to the existing rules to ensure that all the connections including those under Set Top Boxes are brought under the same fold, the official added.
AIADMK Legislature party leader A. Anbalagan said there were an estimated 1.50 lakh to 2 lakh connections in Puducherry and the operators have fudged the actual figures.
Successive governments have failed to collect arrears from the operators resulting in tax evasion for the last 15 years.
The operators have also failed to respond to notices due to political backing and there has been no strict implementation on the ground. The government could emulate Tamil Nadu and start a cable television corporation, he said.
