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Maharashtra to rope in private parties to collect entertainment tax from cable ops

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In an effort to increase entertainment tax collections from cable operators, the Maharashtra government has announced that it will collect duty on cable television through public auction from 2002-03.

State finance minister Jayant Patil, while presenting the state’s budget yesterday said: “Given the constraint of manpower, entertainment duty payable on all cable connections cannot be collected. Therefore, with a view to reduce expenditure on recovery and to increase revenue, I propose to collect entertainment duty on cable television by public auction from the financial year 2002-03. The Bombay Entertainments Duty Act, 1923 will be amended suitably.”

This is yet another attempt by the state government to bring tax collection in line with the actual number of cable connections. Maharashtra is estimated to have crossed 6 million cable TV homes but government records reveal only 2.5-2.6 million connections.

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The govenment will auction the right for collecting taxes to private parties for recognised territories, it has been reported. The chosen party will collect tax from the local cable operator. However, as bidding cannot be done without adequate research the government is hoping that the private party’s effort would make tax collections truer to the actual number of cable connections.

Cable operators see this as another move that could adversely impact the cable television industry in the state and complain that it appears to support broadcasters.

Meanwhile, in a related move, Patil further announced in his budget that he would be revising rates of entertainment duty leviable on discotheques and would include sponsorship amount of fashion shows and other events in the tax base. For this proposal also, the Bombay Entertainment Duty Act will require amendment.

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Cable TV

Hathway Cable appoints Gurjeev Singh Kapoor as CEO

Leadership change comes as cable TV faces shrinking subscriber base and modest earnings pressure

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MUMBAI: Hathway Cable and Datacom has tapped industry veteran Gurjeev Singh Kapoor as chief executive officer, marking a leadership pivot at a time when India’s cable television business is under mounting strain.

Kapoor will take over from Tavinderjit Singh Panesar, who is set to retire in August after a long innings with the company. Panesar, chief executive since 2023, has held multiple leadership roles at Hathway, including his latest stint beginning in 2022.

Kapoor brings more than three decades of experience in media and entertainment. He most recently led distribution at The Walt Disney Company’s Star India business, now part of JioStar. His career spans television distribution and affiliate partnerships, with stints at Sony Pictures Networks India, Discovery Communications and Zee Entertainment.

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Panesar, with over three decades in the industry, has worked across strategic planning, distribution and business development in media, broadcasting and manufacturing. His past associations include ESPN Star Sports, Star India, Apollo Tyres and JK Industries.

The transition lands as the cable sector grapples with structural disruption. Traditional operators are losing ground to streaming platforms, while telecom and broadband players tighten the squeeze with bundled offerings.

An EY report estimates India’s pay-TV base could shrink by a further 30 to 40 million households by 2030, taking the total down to 71 to 81 million. The slide follows a loss of nearly 40 million homes between 2018 and 2024, a contraction that has already wiped out more than 37,000 jobs in the local cable operator ecosystem.

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Hathway’s numbers reflect the strain. The company reported a consolidated net profit of Rs 93 crore for FY25, down from Rs 99 crore a year earlier. Revenue inched up to Rs 2,040 crore from Rs 1,981 crore. As of December 2025, it had about 4.7 million cable TV subscribers and roughly 1.02 million broadband users.

Kapoor steps in with a familiar brief but a shrinking playbook. In a market where viewers are cutting cords faster than companies can reinvent them, the new chief executive inherits a business fighting to stay plugged in.

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