Telecom Companies Dissatisfied With No Tax Cut In Budget 2018 – ZMR Blog
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Telecom Companies Dissatisfied With No Tax Cut In Budget 2018

Telecom Companies Dissatisfied With No Tax Cut In Budget 2018

Phone firms are intensely dissatisfied that the 2018 Budget has not dealt with any of the important stings of the monetarily stressed telecoms sector that is already beleaguered by brutal cost wars and loan of almost Rs 7 Lakh Crore.

“The telecom segment is dissatisfied that none of its main concerns have found cited in the budget of Arun Jaitley, the finance minister. We had asked for a decrease in the high taxes and levies, and an insistent involvement for saving the segment, which is presently encountering hyper rivalry and its worst monetary health,” claimed director general at COAI (Cellular Operators Association of India), Rajan Mathews, to the media in an interview. COAI is the apex industry consortium representing telecom majors such as Vodafone India, Bharti Airtel, Reliance Jio Infocomm, and Idea Cellular.

Mathews claimed that the finance minister had totally overlooked the four major demands of the sector, comprising the instant decrease of unsustainable and high taxes & levies, clarity on RoW(right of way) associated with taxation at the state level, slash in essential customs tax on 4G network mechanism, and the call of industry for a lesser rate of tax to 1% on offers extended to minor dealers. “The FM emphasized the significance of shifting to a digital economy, but the real digital path, which is telecom, has discovered no mention when it comes to substantive support, unlike railway, road, electricity, and highways that have got substantial support,” claimed the director general of COAI.

Mathews claimed that the telecom segment might have advantaged considerably if the budget had made the paths for slashes in major telecom taxes such as SUC (spectrum usage charges), USOF (Universal Service Obligation Fund) fees, and license fee. The 33% of every Rs 100 a telecom company makes is given to the management as taxes. A decrease in levies, he claimed, might have allowed telecom companies to deliver data and voice services at more affordable costs.

The director general of COAI claimed that the sector is distressed to witness that telecom, which is the foundation for shifting the digital economy ahead, carries on to stay an orphan. Telecom companies had expected that the 2018 Budget might deal with systemic problems such as redefining the AGR (adjusted gross revenue) lowering license fee and SUC to a consistent 1% of AGR and reducing the USOF contribution, which is also given as a portion of yearly income to the administration.

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