Gehua DTV Subscription Fees Win Tax Exemption

China Securities Journal, 11/07/08

Beijing Gehua CATV Networks (600037.SH) announced today that the company had received a notification from the Beijing Bureau of Finance and the municipal tax authorities that in order to support digital cable testing and conversion projects, the authorities will exempt Gehua from business taxes on the RMB 18 per user per month it receives for basic DTV services from July 1, 2008 to June 30, 2011. Preliminary calculations show that in 2008, as a result of the exemption, Gehua will record approximately RMB 5 mln in additional profits.

Editor's Note: The tax exemption on DTV basic subscription fees is part of a policy package introduced by the State Council at the beginning of the year to help accelerate nationwide development of DTV in China. For more background on this topic, please see "State Council Issues Policy to Accelerate DTV Development", MD 1/21/08 issue.

Keywords: government support Beijing Bureau of Finance pricing 600037.SH conversion DTV Gehua policy State Council tax television cable TV

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