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DTH services, some household items to become costlier in Delhi

By IANS,

New Delhi: At a time when spiralling food prices are burning a hole in citizens’ collective pocket, the Delhi government Monday introduced two bills – to tax television through DTH (Direct to Home) services and to increase taxes on some goods, including household items.

Finance Minister Ashok Kumar Walia introduced the Delhi Entertainment and Betting Tax (Amendment) Bill, 2009, in the assembly here Monday, which would bring the DTH services under the tax net.

At present, the cable television subscribers are required to pay entertainment tax but no such tax is levied on the subscribers receiving DTH service. The government is eying an additional revenue of Rs.7.2 crore (Rs.72 million) per annum from this provision.

The amendment also covers the provision of levying of licence fee on the bookmakers who are operating in the Delhi Race Course and Club, which will provide additional revenue of Rs.56 lakh (Rs 5.6 million) per annum.

Walia also introduced the Delhi Value Added Tax (Amendment) Bill, 2009, intended to address “anomalies and discrepancies in the act”, which proposes to enhance the VAT rate from 4 to 5 percent on goods specified in third schedule, except declared goods under Central Sales Tax Act, 1956. This enhancement of tax rate is likely to generate additional resource to the tune of Rs.500 crore (Rs.Five billion).

The finance minister also introduced the Delhi (Incredible India) Bed and Breakfast Establishments Registration and Regulation (Amendment) Bill, 2009, to address certain problems in the implementation of the scheme, on behalf of Chief Minister Sheila Dikshit.