No levy reduction for telecom companies likely in Union Budget

Must Read

Howdy, Modi! : World media reactions on Modi-Trump’ grand Houston Event address

New Delhi, Sep 23: United States President Donald Trump and Indian Prime Minister Narendra Modi on late Sunday shared...

Howdy Modi : Modi-Trump mark history in US-India relationship with great show at Houston

Houston, Sep 22:  Modi, delivering his speech at the historic event, talks about the development underwent over five years...

ECI announces dates of Maharashtra & Haryana elections; Single Phase Election on October 21; Result on 24th

Election Commission of India has announced the dates of much-awaited state elections. According to the Chief Election Commissioner, Sunil...

New Delhi, June 15 (IANS) The Union Budget is unlikely to propose any reduction in levies for telcos or allow them more time to clear their spectrum dues to the government, sources privy to the development said.

The mobile operators association COAI has urged the new government to slash the overall levies to 4-5 per cent to ease the financial burden on the stressed telecom sector in the wake of intense competition. At 30 per cent, India’s telecom levies are the highest in the world.

Another key demand of the industry that they be allowed more time to repay for the spectrum bought in earlier auctions and that their moratorium period be increased to four years and payment period to 18 years while keeping the Net Present Value unchanged is not likely to find favour with the Finance Ministry as the North Block feels that the sector’s current state is its own doing.

The entry of aggressive new operator, Reliance Jio, and its free voice and dirt-cheap data offerings, has prompted incumbent telcos like Bharti Airtel, Vodafone and Idea Cellular to respond, hitting their overall financials and business plannings.

But the Ministry feels that below-cost tariffs are unhealthy when the telcos are undertaking network expansion, raising capital through rights issues and IPOs, taking high sales, marketing and branding exercises. It feels that helping them survive in the market by providing them fiscal sops is not the government’s responsibiliy.

Neither the interim Budget nor the 2018 Budget had any give-aways for the telecom sector, even though the industry pleaded for government support saying it was a must for realising the PM’s vision of a fully connected and empowered Digital India.

The telecom industry is saddled with nearly Rs 4.5 lakh crore of debt, taking stock of which, the government had in 2017-18 approved a proposal for allowing operators more time to pay for the spectrum they bought in auctions to 16 years payment period.


Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

UK lawmakers back Johnson’s Brexit deal, but want more time

London, Oct 23 (IANS) UK Prime Minister Boris Johnson managed to garner the preliminary support of Parliament for his...

US stocks close lower amid earnings

New York, Oct 23 (IANS) US stocks closed lower as investors digested a batch of corporate earnings reports.On Tuesday, the Dow Jones Industrial...

Tusk to recommend EU27 to grant extension for Brexit

Brussels, Oct 23 (IANS) Donald Tusk, the President of the European Council, said that he would recommend the 27 member states of the European...

Julie Andrews says therapy saved her life

Los Angeles, Oct 23 (IANS) Veteran actress Julie Andrews has opened up about therapy. She says it saved her life, in a way.She spoke...

US dollar rises amid falling sterling

New York, Oct 23 (IANS) The US dollar appreciated in late trading amid declining sterling on the backdrop of renewed Brexit fears.British Prime Minister...
- Advertisement -

More Articles Like This