Pemra seeks tax exemption, industry status for cable TV sector

ISLAMABAD: In a unique development, the Pakistan Electronic Media Regulatory Authority (Pemra) in two different letters written to the government has requested for grant of industry status to cable TV sector.

The authority has also asked for grant of tax holiday/exemption on import of digitalisation equipments thus facilitating cable operators in meeting digitalisation deadline by September 30, 2016.

While pleading the much-awaited demand of cable TV operators on both the issues, Pemra, in its letters, has informed the federal government that the cable TV services in Pakistan have attained a significant status in the socio-economic set up of the country.

“The sector has developed enormously in terms of provision of quality media services, establishing reliable business enterprises and adoption of latest technologies. This multifarious development has generated considerable economic activity and the prospects of further enhancement are markedly visible,” the authority said in the letters.

Pemra letters highlight that it has more than 4,000 licensed cable TV operators who are significantly contributing to the media growth, investments and employment in Pakistan. The scarcity of funds and market incentive are acting as an impediment in achieving the desired level of development in the cable TV sector. Adding support for cable TV operators, Pemra says that there are 74 million cable and satellite viewers and 61 million terrestrial viewers. According to estimates, a cumulative investment in electronic media sector in Pakistan is $4 billion and direct/indirect employments are 250,000 persons.

Introduction of new technologies i.e. DTH, IPTV, mobile TV, satellite radio and digitalisation of cable TV will further generate opportunities for investment and employment in the production of set top boxes, digital receivers and allied technologies which make strong basis to declare the cable TV sector as an industry, which would enable cable operators to avail themselves of short term and long term loaning facilities, import duty exemptions and other allied facilities extended to an ‘industry’.

In addition to encouraging local and foreign investments, the industry status will also facilitate import as well as manufacturing of better quality equipment at consumer-friendly market prices. These developments will subsequently lead to improvement in quality of the cable TV services, at par with the global standards.

Moreover, Pemra, on request of Cable Operators Association of Pakistan (CAP), has requested FBR through the federal government for declaring tax holiday/exemption on import of equipment required for digitalisation of cable TV services and set top boxes (STBs). This would facilitate CTV operators to digitalise their respective cable TV services and to meet the international (ITU) commitment. Exemption in taxes/duties on import of such equipment will also reduce the cost of digitalisation and its ultimate benefit would be passed on to general public in shape of low prices of digital cable TV services. The exemptions, it noted, would also facilitate import of quality equipment at consumer-friendly market prices.