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| Budget Wishlist: Telecom |
| BS Reporter / New Delhi Jun 24, 2009, 00:58 IST |
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 CEO-SPEAK- Manoj Kohli, CEO and Joint Managing Director, Bharti Airtel
TAX RATIONALISATION - THE WAY FORWARD
The government should rationalise licence fees and spectrum charges to keep the momentum going in the telecom sector, especially in rural segments. To enable a speedy rollout of telecom infrastructure in rural areas, there should be a single-window clearance mechanism. Planned auctions of 3G and Broadband Wireless Access spectrum, as per already notified guidelines, should be
Chamber Speak
FICCI
There should be tax holiday for companies which have started services after 31 March, 2005. Absence of it has been affecting their profitability, cash flow position and eventually valuation of all new licencees. Tax holiday for such companies will help them offset their cost disadvantages. Also, instead of a variety of taxes and levies, a single taxation regime should be introduced for the telecom sector to make the tax structure hassle-free and investor-friendly.
CII
Rationalisation of the taxes paid by the telecom sector should be a priority area for the government. The government should look at lowering the licence fees paid by the telecom companies to 0.5 -1 per cent. There should be incentives for broadband growth and a clear road map on spectrum allocation.
EXPERT VIEW: Akash Gupt, Executive Director, Tax & Regulatory Services, PricewaterhouseCoopers
Multiplicity of levies (revenue share, spectrum charge, service tax etc), has made the Indian telecom industry the highest taxed in the world (aggregating to 20-22%, compared to 0.5% to 2% in developed countries). The Budget should seek to rationalise these levies into a lower single telecom tax, as is the global practice.
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