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Union Budget 2023-24: What Is The Media And Radio Industry Expecting From SItharaman This Year?
Updated on: 01 February, 2023 01:09 PM IST |Shweta Shah
February 1 marks a life-changing event for Indian citizens and several industries as the Finance Ministry announces the Union Budget 2023-24. Updation, alterations, amendments, and additions to the budget affect every industry that contributes to India`s GDP growth. The country`s entertainment industry - specifically media, gaming, and radio is also expecting some changes from Nirmala Sitharaman`s Budget for 2023-24.
According to Statista, the media and entertainment industry contributed over 1.6 Trillion in 2021. Recovering from the severe downfall of the pandemic, the industry grew more than 16 percent between 2020 and 2021, with television making up the highest contribution, followed by digital and print media.
Here are some of the expectations of the media and entertainment industry from the Union Budget 2023-24.
For the unversed, monstrous names in Bollywood such as Dharma Productions and Yash Raj Films are planning to launch their own VDA. One of the reasons to restrict promoting the same is the current tax composition.
New and progressive tax rates on Virtual Digital Assets of the media and entertainment sectors will not only encourage consumers to consider this as another investment option but also help the industry to contribute better to the financial development of the country.
According to Statista, the media and entertainment industry contributed over 1.6 Trillion in 2021. Recovering from the severe downfall of the pandemic, the industry grew more than 16 percent between 2020 and 2021, with television making up the highest contribution, followed by digital and print media.
Here are some of the expectations of the media and entertainment industry from the Union Budget 2023-24.
1. Support to the Broadcast Industry
The Broadcast industry expects the support of the Finance Ministry on serious issues like piracy and the New Tariff Order. The sector is expecting some of the policymakers to shed light on some regulations that will encourage the new and growing areas like over-the-top (OTT) platforms.2. Introducing GST for the Radio Industry
The radio sector is expecting Goods and Service Tax (GST) rationalization from this year`s budget to allow the audience base to grow and penetrate rural sectors through digitization and integration of the latest technology.3. Relaxation on Tax Structure for Virtual Digital Assets
India`s rigid tax structure for Virtual Digital Assets (VDA) has caused a voluminal shift to foreign centralized asset exchanges from domestic ones. The industry strongly suggests a progressive tax construction to encourage more investments in the domestic VDA by restoring consumer sentiments. The industry also believes relaxing the current applicable tax rates to non-theatrical rights will help them manage their working capital in an efficient manner.For the unversed, monstrous names in Bollywood such as Dharma Productions and Yash Raj Films are planning to launch their own VDA. One of the reasons to restrict promoting the same is the current tax composition.
New and progressive tax rates on Virtual Digital Assets of the media and entertainment sectors will not only encourage consumers to consider this as another investment option but also help the industry to contribute better to the financial development of the country.
4. Clarity on Taxation Model for the Gaming Industry
The online gaming industry is the future of India. After Prime Minister Narendra Modi recognized online gaming as a legitimate sport, the industry now demands clarity on its taxation model. Seeking support from the policy makers for tax on platform fees or Gross Gaming Revenue (GGR), the gaming industry expects the government to shed some light on the same.5. Access to Infrastructure Status in the Media Industry
Infrastructure Status for the media industry creates a pathway to upgrade, invent, or borrow technology required to give a better experience to the audience. This is going to ease the industry to get financial credits and avail necessary tax incentives from the government.ADVERTISEMENT
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