Categories: Business

Covid-19: Telecom companies plead with government, demand for duty reduction and other relief measures


COAI urges govt for cut in levies

new Delhi. The Cellular Operators Association of India (COAI), an association of telecom companies, has urged the government to rationalize regulatory tariffs on telecom service providers (TSPs) amid unfavorable conditions arising due to the corona virus epidemic. Apart from this, the organization has also demanded other relief measures.

Telecom service providers have to pay regulatory charges like spectrum charges and license fees. The organization has written a letter to Finance Minister Nirmala Sitharaman that regulatory fees such as spectrum charges and license fees should be cut immediately. The organization has also demanded immediate withdrawal of the unused input tax credit.

COAI Director General Rajan Mathews has also said in a letter dated 26 June that we request that telecom companies can be given cheaper loans at the marginal cost based interest rate (MCLR rate). For this, input credit of Goods and Services Tax (GST) can be pledged.

Mathews said that the effective rate of spectrum usage charge (SUC) should be reduced by three percent for all telecom service providers. In addition, the license fee contribution should be immediately reduced from eight percent to three percent. Companies like Reliance Jio, Vodafone Idea, Bharti Airtel, Nokia, Ericsson, Sterlite, Indus, Cisco, Facebook, Google and Amazon are members of COAI.

This post was published on June 29, 2020 10:56 am

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