Telecom lobbies COAI and AUSPI are pitching for rationalising multi-level taxes, charges and fees applicable to the telecom industry in the Budget, demanding a unified system along with a single levy for revenue collection. The industry has repeatedly requested that multifarious taxes, charges and fees applicable to industry should be unified and a single levy on revenue should be collected.
We propose to request Department of Telecommunications (DoT) to constitute a committee to study present structure of levies and make suitable recommendations to Government, AUSPI said in a pre-Budget proposal for fiscal 2011-12.
The body is also requesting Finance Minister Pranab Mukhrjee, who will be tabling the Budget on Feburary 28, to initiate the process of auctioning more spectrum for mobile services at the earliest.
The mechanism followed by the government to auction 3G spectrum recently has been successful and this should facilitate an early auction of additional spectrum.
In view of the above, the government should envisage auction of additional spectrum in the Financial Year 2011- 2012 and accordingly include the proceeds from auction of additional spectrum in the Budgetary estimates, it said.
“We would therefore request the Government to initiate the process of auctioning more spectrum for mobile services at the earliest,” GSM lobby group COAI said in a its pre-Budget memorandum.
“We request that this upfront auction amount paid for acquiring 3G spectrum should be allowed as a capital asset for the purpose of tax depreciation and an amendment be introduced regarding the same,” the telecom lobby said.
The government had collected over Rs 67,719 crore for 3G spectrum aution.
COAI also wants service tax on broadband and pure internet services to be abolished besides doing away with service tax on renting of immovable property for use by telecom service providers.