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NEW
DELHI: In the 2008-09 budget, the Union Finance Minister P
Chidambaram has no major giveaway to the media and entertainment
sector except in the areas of convergence and digitalisation.
The
budget has waived duties on the set-top boxes, giving a boost
to the cable TV, direct-to-home (DTH) and IPTV operators.
Chidambaram has also reduced duty on convergence products
from 10 per cent to 5 per cent.
Presenting
the budget, Chidambaram said specific parts of STBs and specified
raw materials for use in IT and electronic hardware industry
have been fully exempted from customs duty.
The
minister also announced that to establish parity between devices
used in the information/communication sector and the entertainment
sector, he was reducing the customs duty on convergence products
by half.
While the announcement partly meets the demand by the Indian
Broadcasting Foundation relating to STBs, it has failed to
meet the long-standing demands of the film industry articulated
through various organisations including Ficci and representations
to the Information and Broadcasting ministry.
Noting
that India's music, literature, dance, art, cuisine and especially
films are attracting huge interest around the world, Chidambaram
announced a provision of Rs 750 million to the Indian Council
of Cultural Relations to design and implement a programme
to project these in a sophisticated and subtle manner. He
described this as the 'soft power' of India.
In
a move that may help the printing and newspaper industry,
Chidambaram announced reduction of the excise duty from 12
to 8 per cent on "paper, paper board and articles made
therefrom manufactured out of non-conventional raw materials
by units not having an attached bamboo/wood pulp making plant."
There would be a further reduction on clearances up to 3,500
tonnes from 8 per cent to nil. Furthermore, the excise duty
on certain varieties of writing, printing and packing paper
will be reduced from 12 per cent to 8 per cent.
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