Taxes absorb 58% telco revenues in nation with lowest tariff: Voda-Idea CEO

Says operational cash generation can be released for investments if govt eases tax burden

Apart from having one of the highest incidences of visible levies in the world, Indian telcos have a large hidden cost, which results in 58 per cent of their revenues becoming liable for government taxes, Vodafone Idea chief executive officer (CEO) Akshaya Moondra has said.

Arguing that the industry needs to quickly make massive capital investments for migration of technology, he said the burden on the sector must be reduced fast.

“We have 18 per cent goods and services tax (GST) and 12 per cent licence fees and spectrum use charges. This 30 per cent is very visible to everyone.