Budget 2024: Duty relief, tax rebate on telecom wishlist
India’s leading mobile carriers are urging the government to significantly reduce regulatory burdens in the upcoming budget to accelerate 4G and 5G network expansion. They argue that high customs duties and heavy levies currently hinder infrastructure development, particularly before a robust local manufacturing ecosystem is established. By waiving duties on network gear and lowering license fees, operators aim to lower rollout costs and enhance connectivity across both urban and underserved rural regions. The telcos also seek financial relief through tax reforms, including extending loss carry-forward periods and exempting key payments from reverse-charge GST mechanisms. These measures are intended to unblock working capital trapped in accumulated input tax credits. Additionally, operators request suspending contributions to the universal service obligation fund until its existing corpus is fully utilized, arguing that this approach better supports targeted infrastructure deployment without adding immediate financial strain to already cash-constrained businesses. This article is highly relevant to open data because it highlights the critical link between affordable infrastructure and equitable digital access. Open data initiatives rely on widespread, reliable connectivity to ensure information is accessible to all citizens, particularly in remote areas. If financial barriers prevent the expansion of telecom networks, the digital divide widens, limiting the population’s ability to access, contribute to, and benefit from open data ecosystems. Therefore, policy decisions affecting telecom costs directly impact the feasibility and reach of open data projects.
Source: economictimes.indiatimes.comPublished on 2024-07-09