News Broadcasting
IBF exhorts govt to remove service, fringe benefit taxes
NEW DELHI: The Indian Broadcasting Foundation has petitioned the government to remove the disparity between the electronic and print media by seeking exemption from service tax on advertising revenue.
In its pre-Budget memorandum to the finance ministry, the IBF has said an advertisement attracts service tax while being broadcast, but is exempted when appearing in print press.
Thus it makes advertisements 12.25 per cent costlier in the electronic media, distorting the level playing field between various media, the IBF memo states.
The IBF, founded in 1999, is the largest national organization of television broadcasters. Its membership extends to 30 major broadcasters, which make available more than 130 TV channels to millions of Indian homes.
In order to achieve targets for digitalization during the first phase (2006 to 2010), as mandated by the sector regulator, the customs and excise duties on all sector-related equipment should be kept at zero for the next five years.
IBF has exhorted the finance minister to reduce customs duty of set top boxes (STBs), used in addressable system, to zero for at least another five years to ensure that boxes could be made available to customers at affordable prices.
Joining issues with many other industries, IBF has said that keeping in view the special characteristics and role in sub-serving the fundamental right of receiving and dissemination information, the fringe benefit tax (FBT) should not be imposed on the electronic and print media.
It has argued that if the government wishes to levy FBT, then it should be categorized along with five other industries, including infotech, where the tax concerned has a low base of five per cent.
Some other demands of the IBF are following:
# Inclusion of the cable & broadcasting industry under section 72 A of the Income Tax Act, which provides incentive for takeover /amalgamation by robust companies.
# Direction to government field officers to accept service tax on subscription revenue (introduced in June 2005) on the basis of the list of cable operators having a turnover of more than Rs. 400,000, since those with lesser turnover have been exempted by the government.
News Broadcasting
BBC to cut up to 2,000 jobs in biggest overhaul in 15 years
Cost pressures and leadership change drive major workforce reduction plan
LONDON: BBC has unveiled plans to cut up to 2,000 jobs, roughly 10 per cent of its global workforce, in what marks its biggest downsizing in 15 years.
The announcement was made during an all-staff meeting led by interim director-general Rhodri Talfan Davies, as the broadcaster moves to tackle mounting financial pressures and reshape its operations.
Between 1,800 and 2,000 roles are expected to be eliminated from a workforce of around 21,500. The cuts form part of a broader plan to save £500 million over the next two years, aimed at offsetting rising costs, stagnating licence fee income and weaker commercial revenues.
In a communication to staff, BBC interim director-general Rhodri Talfan Davies said, “I know this creates real uncertainty, but we wanted to be open about the challenge,” acknowledging the impact the move would have across the organisation.
The restructuring comes at a time of leadership transition. Former director-general Tim Davie stepped down earlier this month, with Matt Brittin, a former Google executive, set to take over the role on May 18, 2026.
While some cost-cutting measures are being implemented immediately, the majority of the structural changes are expected to roll out over the next few years, with full savings targeted by the 2027–2028 financial year.
The broadcaster had earlier signalled its intent to reduce its cost base by around 10 per cent over a three-year period, warning of “difficult choices” as it adapts to shifting economic realities and audience expectations.
With operating costs hovering around £6 billion annually, the BBC’s latest move underscores the scale of the financial challenge it faces, as it balances public service commitments with the need for long-term sustainability in an increasingly competitive media landscape.
