Every year, the IAMAI, the body representing mostly large Internet and some Mobile VAS companies in India forwards suggestions it deems important for its members (let us know - are all members consulted?), requesting certain sops from the Finance Minister from the Union Budget. We're expecting some significant announcements for the Digital & Media industry given that a National Broadband Plan rollout is expected, FM Radio Phase III licenses are expected to be auctioned, and a digitalization plan is expected to be announced (which will require imports). Even then, it is rare for requests from the digital industry to be entertained. Requests put forth by the IAMAI, on behalf of its members: - E-Commerce Tax Exemption: The Government of India should also recommend to all State Governments to waive sales tax on goods and services that are transacted through electronic mode (e-commerce) for the next 5 years up to limits to be prescribed by the Government. - Entertainment Tax: The Government of India should direct to the State Governments to waive Entertainment Tax, currently approximately 30% in certain states, levied on broadband subscriptions and entertainment services, if they are provided through a broadband or Internet platform. - 5 year Moratorium on Service Tax: On Online Advertising and Online Services: The IAMAI suggests that the online industry in India accounts for only 400 odd crores annually (Really?), and a moratorium on service tax would help the industry grow: as a result, services will help drive broadband penetration. - Online Classifieds: a…
