Tax profit on sell of license by new mobile operators at high rate

The Member of Parliament and former owner of BPL Mobile, Mr Rajeev Chandrasekhar, has written to the Prime Minister suggesting the Government should impose a windfall (Extra) tax on new mobile players if they sold their licences.

He has also suggested that the Government should formulate the Merger & Acquisition policy in such a way to ensure that there are at least 10 operators in each circle to sustain the level of competition. Speaking to Business Line, Mr Chandrasekhar said, “The new operators got licences cheaply and without auction of spectrum, in the name of consumer interest. If the operator were to exit the business without rolling out infrastructure and creating a substantial business, it is only appropriate that the profits accruing should be to the account of the Government and people of the country, and not to the operator alone. The profits made on any sale of licence must be taxed at a special tax rate.”

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