Telecom, broadband operators want tax sops, infra push

As Finance Minister NirmalaSitharaman presents her first Union Budget on Friday, telecom operators want the government to provide tax exemptions and broadband service providers have recommended greater emphasis on fiberisation among others.

According to the Cellular Operators Association of India(COAI), higher customs duty on the telecom equipment is disrupting the costeffectiveness of the telecom operators.

   

The industry body, in its budget recommendation, said:”Exemption from the levy of BCD (basic customs duty) should be granted onthe telecom equipment”, adding that “exemption from IGST (IntegratedGoods and Services Tax) may also be granted for hassle-free importation of suchvessels”.

It has also sought exemption from GST on spectrum payment,license fees and spectrum usage charge.

“Given the huge burden of taxes and regulatory levieson telecom operators and considering the fragile state of their finances,special benefit should be provided to telecom operators in GST by way ofexemption on regulatory payments of LF, SUC and spectrum assigned underauction,” it said.

The COAI also asked the government to exempt operators fromlevy of service tax on Right of Way permission granted by the Centre, stategovernments and the development authorities.

The Broadband India Forum (BIF) also said that for achievingthe National Digital Communications Policy’s (NDCP) target of $100 billioninvestment in the India’s telecom and digital space, the businesses need to bemade more profitable and attractive for which high levies and spectrum chargeshave to be reduced.

“Exorbitant spectrum prices, very heavy levies andcharges and some onerous licence conditions need to be corrected on priority toboost investments,” it said.

It also suggested an infrastructure-push in the the form ofhigher fiberisation for the efficient internet coverage and success of theupcoming 5G network.

Further, the introduction of a number of new small-timeplayers in WiFi provisioning space (PDOs) will be able to boost the broadbandavailability to the masses, the BIF said in its budget recommendation.It also said that the potential of satellitecommunications should be tapped by optimisation of policy and regulatoryframework.

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