FED for cable operators cut to Rs 10

The federal government has decided to slash federal excise duty (FED) for cable television operators from Rs 25 per connection per month to Rs 10 giving a handsome relief of Rs 15 to them.
A senior government official told Business Recorder on Wednesday that the decision has been taken by the committee constituted by the prime minister to review the FED on cable operators. The committee comprises all the stakeholders, including officials from Central Board of Revenue (CBR) and Pakistan Electronic Media Regulatory Authority (Pemra).
The committee after detailed analysis of the suggestions submitted by the cable operators associations and other stakeholders and, in principle, agreed to charge Rs 10 per connection per month from cable operators. The break-up of Rs 10 reveals that Rs 8 would be collected as excise duty and Rs 2 would be paid to Pemra.
Sources said the government had projected Rs 500 million FED collection from the cable operators through Rs 25 per connection per month in Finance Bill, 2006. However, the FED collection from cable operators would be reviewed during the remaining quarters of 2006-07 after issuance of amended procedure shortly.