Last Update: January 19, 2023, 19:59 IST
5G is now available in over 50 cities in India
5G was launched in India in October, but its roll out has been slow, with select cities able to use its high-speed network connectivity.
Apex telecom industry body has urged the government to waive off the imposition of Basic Customs Duty (BCD) duty in the upcoming Union Budget, which will help in the deployment and smooth roll-out of 5G in India.
High customs duty on telecom equipment is hampering the cost-effectiveness of telecom companies as around 85 per cent of telecom equipment is imported in the country.
“A BCD of 20 per cent is imposed on imports of most telecom equipment such as optical transport equipment/networks, IP radios, MIMO/LTE products, soft switches, VoIP, PTN, MPLS-TP etc., which is hampering cost effectiveness. Telcos,” said the Cellular Operators Association India (COAI), the apex body that represents the telecom sector.
The industry body suggested exemption from levying BCD duty as it would be beneficial to import equipment required to boost 5G roll out.
“Telecom companies are constantly upgrading infrastructure to keep pace with new technologies. However, the required facility for manufacturing equipment has not yet been set up in India. Hence, telecom companies are dependent on imports,” COAI Director General, Lt Gen Dr SP Kochhar (Retd) said.
Keeping in mind the financial health of the industry and the huge investment, “the waiver of import duty will help us in realizing our dream of Atmanirbhar Bharat”, he said.
Apex Telecom made several recommendations to the Finance Ministry for the Union Budget 2023-24.
COAI requested that the Universal Service Obligation (USO) Fund contribution of 5 per cent of the Adjusted Gross Revenue (AGR) may be suspended till the existing USO corpus is exhausted and the license fee be reduced from 3 per cent 1 percent is taxed. by DoT/ Govt. at the earliest to cover administrative costs only.
To facilitate ease of doing business, a centralized registration process has been recommended for industries spread across all 36 States/UTs.
“As an alternative, a centralized jurisdiction may be set up to handle the day-to-day affairs of the taxpayers,” the body said.
COAI also requested the government to facilitate centralized assessment and audit process for large taxpayer entities with turnover of more than Rs 500 crore and presence in more than 12 states/UTs.
This will limit this facility to less than 1 per cent of all corporates and ensure ease of doing business with no loss of revenue to the government.
Kochhar said that considering the heavy burden of taxes and regulatory fees on telecom operators and the critical nature of the service to drive ‘Digital India’, “a special benefit may be provided by way of exemption of GST on regulatory payments to telecom operators.” LF, SUC and spectrum assigned under auction”.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)