Chennai, Sep 14 (IANS) The cash-strapped Tamil Nadu government Wednesday brought Direct-to-Home (DTH) telecast service providers and the Indian Premier League (IPL) cricket tournament within the state's entertainment tax ambit.


The government amended the Tamil Nadu Entertainment Tax Act, 1939, for this purpose.

The bill for amendment was introduced in the assembly by Minister for Commercial Tax and Registration Agri S.S. Krishnamoorthy. The house later passed it.

As per the amendment, the DTH service providers will be charged 30 percent tax while IPL tournament will be subject to 25 percent entertainment tax.

According to the minister, many states have slapped tax on DTH service and IPL matches.

The imposition of tax on DTH service will increase the burden for the subscribers and is likely to impact Sun Direct, the DTH arm of Sun TV group, promoted by Kalanithi Maran who is grand-nephew of DMK patriarch K. Karunanidhi.

Sun Direct is a major player in Tamil Nadu in the DTH space.

The state government has also started its own cable television service through Tamil Nadu Arasu Cable TV Corporation Ltd, and with the rising DTH cost, people may opt for the cable service.