Budget 2009-10: Telecom Industry wishlist
Disinvestment in BSNL, revenue from 3G auction and longer tax break are few things that the Indian telecom industry expects a mention in the proposed budget
Published on Jul 6, 2009
Finance minister Pranab Mukherjee is going to present the budget for the year 2009-10 and Indian telecom industry has put a high hope on it.
Among the most awaited or most anticipated announcements, the industry expects the budget will mention the listing of state-run telecom operator BSNL. In the past the telecom minister as well as the management of BSNL has mentioned the idea of diluting 10 percent of its stake.
However, objections from the employees union of BSNL has so far not allowed the govt to take a bold step in this regard.
The telecom industry also expects the budget will mention about the expected revenue realisation from the 3G spectrum auction. The government expects a revenue of Rs 25,000 to Rs 30,000 crore from the auction. Its mention in the budget is expected to speed up the auction process as the country is desparately waiting the 3G services to be made available to consumers.
Among other expectations, the telecom industry has sought rationalistion of multiple taxes and duties imposed on the sector in the Budget.
GSM operatos lobbying body Cellular Operators Association of India expects longer tax break for the telecom industry at par with the infrastructure industry which would further bolster the growth of the telecom industry. COAI expects a tax break of 20 years with 10 years of 100 percent tax exempation for first 10 years.
Currently, a telecom operator is entitled to a 100 per cent tax break for 5 years, followed by a 30 per cent relief on profit for the next 5 years during the initial 15 years when commercial operations start.
The association also has sought a uniform license fee of one per cent of adjusted gross revenue, excluding universal service obligation fees, across all segments of telecom. At present, operators levy 6-10 per cent of the AGR as licence fee depending on the circle.
Disinvestment in BSNL, revenue from 3G auction and longer tax break are few things that the Indian telecom industry expects a mention in the proposed budget
Published on Jul 6, 2009
Finance minister Pranab Mukherjee is going to present the budget for the year 2009-10 and Indian telecom industry has put a high hope on it.
Among the most awaited or most anticipated announcements, the industry expects the budget will mention the listing of state-run telecom operator BSNL. In the past the telecom minister as well as the management of BSNL has mentioned the idea of diluting 10 percent of its stake.
However, objections from the employees union of BSNL has so far not allowed the govt to take a bold step in this regard.
The telecom industry also expects the budget will mention about the expected revenue realisation from the 3G spectrum auction. The government expects a revenue of Rs 25,000 to Rs 30,000 crore from the auction. Its mention in the budget is expected to speed up the auction process as the country is desparately waiting the 3G services to be made available to consumers.
Among other expectations, the telecom industry has sought rationalistion of multiple taxes and duties imposed on the sector in the Budget.
GSM operatos lobbying body Cellular Operators Association of India expects longer tax break for the telecom industry at par with the infrastructure industry which would further bolster the growth of the telecom industry. COAI expects a tax break of 20 years with 10 years of 100 percent tax exempation for first 10 years.
Currently, a telecom operator is entitled to a 100 per cent tax break for 5 years, followed by a 30 per cent relief on profit for the next 5 years during the initial 15 years when commercial operations start.
The association also has sought a uniform license fee of one per cent of adjusted gross revenue, excluding universal service obligation fees, across all segments of telecom. At present, operators levy 6-10 per cent of the AGR as licence fee depending on the circle.