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Govt to consider tax cuts on DStv
By
Ephraim Munthali - 09-10-2002 |
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Paytelevision service provider Multi-Choice Malawi has said it has received positive feedback from government on the firm’s proposal to scrap off duty and excise on Digital Satellite television (DStv) equipment to make it affordable to many.
Managing director Eddie Smith said in an interview in Blantyre that the Ministry of Information has responded positively to Multi-Choice’s proposal that there should be no duty and excise on satellite equipment.
“We wrote the ministry and they have written us back that the matter has been put under serious consideration by government. They have also assured us that action on the issue will be taken as quickly as possible,” said Smith.
He added: “The 87 percent (which includes surtax, duty and excise) tax on equipment such as decoders and aerials is too much for an ordinary Malawian to afford pay TV. The 20 percent surtax without duty and excise is fine. Many people can afford that.”
Recently, Smith said that Multi-Choice’s efforts to extend DStv equipment to the majority of the people in the country were hampered by high duty and excise.
According to Multi-Choice Malawi, although in dollar terms the price of the equipment has actually gone down to US$150 (about K12,000) from US$600 (about K52,000) in 1996, the price was still high in kwacha terms because of the several taxes that are paid to government on all imported equipment.
Smith said television is not a luxury but a necessity as it provides education and information which are people’s fundamental rights.
“Everyone should have access to television to get information, education and entertainment. It is wrong to regard television as a luxury. It is a necessity and it is the responsibility of the government and other stakeholders to ensure that every Malawian has access to it,” he said.
There are close to 300,000 television viewers in the country but only 6,200 people subscribe to DStv.
Multi-Choice’s target is to connect 20,000 subs-cribers. |
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