Sunday, October 2 2005 18:48 Hrs (IST) - World Time -

Bangalore: Thousands of cable homes in the city and surrounding areas continued to be blacked out for the second day today (Oct 2, 2005) following the indefinite strike called by Multi-System Operators (MSO) last evening (Oct 1, 2005) to protest against the 'double taxation' policy of the State Government.

The strike initially launched in some parts of the state, including Bangalore, Mysore and Kolar since last evening would spread to the rest of Karnataka if their problems were not solved, according to Amrut Kumar, General Secretary, Karnataka Cable TV Chamber of Commerce.

"Nearly half of the state had been hit and the remaining half would soon be hit if the Government insist on paying the tax with effect from 2002. Mangalore, Gulbarga, Raichur, Tumkur would be blacked out from 8.30 pm tonight," he said.

The strike was sparked when the Commercial Tax department serving a final assessment notice to MSOs to pay up tax liability with retrospective effect from April one, 2002 within a week's time.

Angry MSOs switched off signals to the various cable operators from 5 pm last evening to protest the move.

Speaking on the double taxation, he said the MSOs already paid up Rs 6500 per month as entertainment tax. The imposition of MSO entertainment tax, calculated at the rate of 10 percent on the amount paid by cable operators to MSOs would amount to 'double taxation', he opined.

The 10 percent tax would also mean an additional burden on consumers who would be forced to bear the brunt of a monthly hike of Rs 25 in their subscription fee.