Nitish Planning Hike in Cable TV Rate to Compensate for Revenue Loss

Cable TV rate to go up in Bihar.

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Patna: Desperate to raise some serious cash in the aftermath of massive revenue loss to the state exchequer due to the introduction of prohibition in the state, the Nitish government was mulling the idea of tripling the tax on cable TV that could go into effect as early as this Wednesday.

Struggling to make up for the immense financial loss despite Chief Minister Nitish Kumar's repeated denial to the contrary, the state government had been showing creativity in making up for the loss by imposing new taxes or raising the old ones as the Grand Alliance government plans to raise the entertainment tax in Bihar from Rs. 15 to Rs. 50 per subscriber per month.

Interestingly, this will make Bihar the home of highest tax in the country – much higher than even Delhi and Bangalore.

With a goal to make up for the loss of over Rs. 5,000 crore due to prohibition in the state, the state government has set out to impose a variety of new taxes while raising the amount of existing taxes to fund Chief Minister's 7-point development resolve that would need a minimum of Rs. 22,000 crore in the fiscal year 2016-17.


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