Mobile phone service providers are now seeking to reduce the license fee and the removal of goods and service tax on the fee. They are further asking the Center to reconsider spectrum acquisition and usage charges, in the upcoming Budget of 2021.
The Cellular Operators Association of India has stated that certain allowances need to be made for the telecom sector that contributes Rs. 58,000 CR annually and has invested Rs. 11.24 Lakh CR till now. According to them, the license fee needs to be brought down to 1% instead of the recommended 3%, which in their opinion is higher than the world average that needs to be maintained. The association went on to say that regulatory levies paid by the telecom sector companies should be exempted from GST.
This association that includes Reliance Jio, Bharti Airtel, and Vodafone Idea also advises against paying customs duty on certain telecom equipment because it is increasing the cost of distribution of necessary infrastructure. Earlier they had asked to be exempted from paying service tax in the duration of April 2016- June 2017.