Open Data

Union Budget 2023: Telecom industry seeks relief in levies, customs duty, seeks refund of Rs 32,000 crore of tax credit, Telecom News, ET Telecom

Union Budget 2023: Telecom industry seeks relief in levies, customs duty, seeks refund of Rs 32,000 crore of tax credit, Telecom News, ET Telecom

The telecommunications industry is urgently seeking government intervention to alleviate severe financial pressures that threaten the viability of India’s digital infrastructure. Key requests include suspending Universal Service Obligation contributions, reducing license fees to administrative levels, and exempting GST on spectrum acquisition charges. These measures aim to stabilize operators' cash flows, allowing them to sustain critical investments required to expand connectivity and fulfill national broadband goals. A central component of this appeal involves resolving complex tax compliance issues, specifically seeking a refund or adjustment of over thirty-two thousand crore rupees in Input Tax Credits. Operators argue that the current mechanism creates an unsustainable financial burden without generating additional revenue for the state. By allowing these credits to offset statutory dues or serve as loan collateral, the government could significantly ease liquidity constraints, thereby fostering a healthier economic environment for telecom service providers. Finally, the sector highlights the need for reduced customs duties on imported equipment and clearer tariff definitions to prevent litigation. Lowering import taxes on essential networking gear is crucial for enabling cost-effective 5G deployment and promoting local manufacturing. This request underscores the direct link between regulatory relief and the successful execution of open data and digital economy initiatives. Without affordable infrastructure, the broader ecosystem for transparent, accessible data remains constrained, making these fiscal adjustments vital for national digital sovereignty and growth.

Source: telecom.economictimes.indiatimes.com
Published on 2023-01-19

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