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New tax will close local TV channels
Thursday, 23 February 2006 - 3:44 AM SL Time
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A Sri Lankan government tax which will affect local television channels that broadcast foreign programmes may force some companies to close, industry officials said yesterday.
The tax of LKR75,000 ($735) for every foreign program aired would translate into a 50-100% tax on most programmes, a television company official said.
`It has an impact on us to the extent that we will have to close down,` said Stefan Beekmeyer, the managing director of ART Television and Broadcasting Co., which airs English-language television series such as `The Apprentice` and `Desperate Housewives.`
Sri Lanka has seven private television companies and two state-owned companies which manage 11 channels.
The government budget for 2006 included the planned tax which would apply to foreign programmes other than documentaries of educational interest `with a view to promote the local film and tele-drama industry.`
`Having taken into consideration the richness and diversity of the Sri Lankan cultural milieu, the following assistance is proposed to further enrich art and culture,` President Mahinda Rajapakse said, announcing the planned tax in December.
Television company officials said they had urged the government to withdraw or reduce the tax as it would be an unbearable cost, but the government has yet to change its plans.
The tax is set to go into effect on April 1.
`We would have to raise sponsorship rates by more than 100% in the case of some programs to pay the tax,` said Lakshaman Bandaranayake, the managing director of Vanguard Management Services, which runs the ETV channel.
ART Television`s Beekmayer said his company might have to pay LKR125 million per year under the new tax, or about 75% of current revenue.
The proposal could reduce the import of Tamil and Hindi language programs as well as English language programs, industry officials said.
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zulu
Joined: Nov 2005
Posts: 19
Member Profile
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23 Feb 2006 05:14:21 GMT Report for Abuse
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| This is purposely done to attack SIRASA TV, which is a big headache to Motta Raala and clan. |
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