NEW DELHI:The All India Digital Cable Federation (AIDCF), the apex body of cable operators, has petitioned information and broadcasting minister Ashwini Vaishnaw and finance minister Ashwini Vaishnaw to slash goods and services tax on cable television from 18 per cent to 5 per cent.
The appeal rides on prime minister Narendra Modi’s push for “next-generation GST reforms” and a two-rate structure. The federation argues that cable remains the cheapest mass medium, reaching 64 million households and sustaining 10–12 lakh jobs, yet is under siege from rising costs and unregulated OTT rivals.
Powered by 852 multi-system operators and 1.6 lakh local cable operators—mostly small entrepreneurs—the sector was even recognised as an “essential service” during the pandemic. But the economics are dire. Broadcaster fees have surged nearly 600 per cent, pushing up subscription costs by 35–40 per cent. With consumers balking at higher tariffs, margins are collapsing.
“Market dynamics have become unfair for MSMEs in cable TV, as they are bound by tariff regulations while OTTs operate without comparable oversight,” AIDCF wrote.
The lobby claims a GST cut would restore affordability for households, ease working capital pressures, enable fresh broadband investment under Digital India, and protect lakhs of jobs.
AIDCF secretary general Manoj P Chhangani urged the government to table the matter at the next GST Council meet: “A reduction will safeguard the viability of MSOs and LCOs and preserve cable’s role in inclusive connectivity.”
Industry watchers caution that while OTT is growing fast, cable still dominates in small towns and villages. A tax reprieve, they say, could decide whether it remains India’s broadcast backbone—or fades into obsolescence.