AIDCF Urges Government to Cut GST on Cable TV to 5% Amid Rising Costs, ETCFO
The All India Digital Cable Federation (AIDCF) has urged the government to reduce the goods and services tax (GST) on cable television services to 5% from the current 18%, citing mounting financial stress on operators and increasing costs for consumers.
In a letter to finance minister Nirmala Sitharaman, the federation said the cut would align with Prime Minister Narendra Modi’s vision of next-generation GST reforms while ensuring affordability for millions of households.
Cable TV continues to reach more than 64 million households and supports 1-1.2 million livelihoods, according to the AIDCF. However, the industry has come under pressure from steep increases in broadcaster fees, changing viewing habits and competition from unregulated over-the-top (OTT) platforms, it said.
“Satellite channel prices have surged nearly 600% in recent years, leading to a 35–40% rise in monthly bills for consumers. A reduction in GST would help absorb this increase and keep services affordable,” said Manoj P. Chhangani, secretary general, AIDCF.
The sector, comprising 852 multi system operators and about 160,000 local cable operators, is largely run by small entrepreneurs at the district and village levels.
The AIDCF said lowering GST would give operators the liquidity to sustain businesses, reduce subscriber churn and invest in broadband expansion to support the government’s Digital India mission.
The federation, whose members account for more than 60% of the cable TV market, has requested that the issue be taken up in the upcoming GST Council deliberations.
The 56th meeting of the GST Council is scheduled for September 3-4 in Delhi. The government is considering reducing the current four-tier GST structure of 5%, 12%, 18% and 28% to a two-rate system of 5% and 18%.
