Telecom
minister Manoj Sinha on Monday met Finance minister Arun Jaitley
seeking North Block’s feedback on reduction of telecom taxes, including
spectrum and licence fee, envisaged in the new digital communication
policy. Sinha was also there to seek Jaitley’s approval on the telecom
PSU, BSNL and MTNL’s 4G spectrum pleas worth Rs 13,000 crore.
Official sources said the sector, which has seen challenging times with heightened competition among players with very low tariffs, is fighting the twin battle of high levies and low tariffs. This has made the top players bleed on their top and bottomlines forcing them to seek early approval of the broad levy rationalisation framework.
Though Sinha did not comment on his discussion with Jaitley, sources added that the telecom minister raised the levies issues and also the Rs 13,000 crore specrum allocation to BSNL and MTNL to start 4G services. Sinha is learnt to have said that these two loss-making PSUs stand good chance of turning around, if the spectrum is alloted to them for matching the competition on 4G service. Currently, the Finance Ministry is being consulted over this on the draft cabinet note.
Sinha had earlier said that the government is aware of the telecom industry’s concerns, including those around higher levies and inadequate spectrum, and the new communications policy will address these issues. DoT secretary Aruna Sundararajan had stated that the department was aware that much needed to be done in the areas of rationalisation of levies. DoT is currently in the process of drafting the rules for the new policy.
The National Digital Communications Policy (NDCP) — has enabling provisions for rationalising levies of the telecom sector the DoT had said.
Under NDCP 2018, the government plans to optimally price spectrum, review levies such as licence fees and spectrum usage charges.
Last month, Bharti Airtel chairman Sunil Mittal rued that the telecom sector remains highly taxed just like the tobacco industry, even when it is contributing to India’s digital aspirations. “In India, for every Rs 190 that mobile operators earn, nearly Rs 37 goes towards one form of levy or the other. I cannot see how this contradiction can exist. Where on one hand, we have PM’s vision of digitally enabled India... which requires tremendous amount of investment, on the other hand we keep the spectrum prices and our licence fee very high... And of course, the GST is at 18 per cent which almost at the highest tax bracket,” Mittal said.
The finance ministry is examining the Department of Telecom’s proposal on allotting spectrum worth Rs 13,000 crore for 4G services to BSNL and MTNL as the planned allocation will be an expenditure on the government.
Official sources said the sector, which has seen challenging times with heightened competition among players with very low tariffs, is fighting the twin battle of high levies and low tariffs. This has made the top players bleed on their top and bottomlines forcing them to seek early approval of the broad levy rationalisation framework.
Though Sinha did not comment on his discussion with Jaitley, sources added that the telecom minister raised the levies issues and also the Rs 13,000 crore specrum allocation to BSNL and MTNL to start 4G services. Sinha is learnt to have said that these two loss-making PSUs stand good chance of turning around, if the spectrum is alloted to them for matching the competition on 4G service. Currently, the Finance Ministry is being consulted over this on the draft cabinet note.
Sinha had earlier said that the government is aware of the telecom industry’s concerns, including those around higher levies and inadequate spectrum, and the new communications policy will address these issues. DoT secretary Aruna Sundararajan had stated that the department was aware that much needed to be done in the areas of rationalisation of levies. DoT is currently in the process of drafting the rules for the new policy.
The National Digital Communications Policy (NDCP) — has enabling provisions for rationalising levies of the telecom sector the DoT had said.
Under NDCP 2018, the government plans to optimally price spectrum, review levies such as licence fees and spectrum usage charges.
Last month, Bharti Airtel chairman Sunil Mittal rued that the telecom sector remains highly taxed just like the tobacco industry, even when it is contributing to India’s digital aspirations. “In India, for every Rs 190 that mobile operators earn, nearly Rs 37 goes towards one form of levy or the other. I cannot see how this contradiction can exist. Where on one hand, we have PM’s vision of digitally enabled India... which requires tremendous amount of investment, on the other hand we keep the spectrum prices and our licence fee very high... And of course, the GST is at 18 per cent which almost at the highest tax bracket,” Mittal said.
The finance ministry is examining the Department of Telecom’s proposal on allotting spectrum worth Rs 13,000 crore for 4G services to BSNL and MTNL as the planned allocation will be an expenditure on the government.
