Coai urges tax cut for telecom sector

New Delhi: The Indian telecom sector will get a boost if the Centre further reduces the tax burden in the upcoming budget to help enhance the financial well-being of the sector, the Cellular Operators Association of India (Coai) said on Wednesday.

In its recommendations on behalf of the telecom industry, the Coai said considering the huge capital that telecom service providers (TSPs) have to invest in the current scenario, especially for the deployment of 5G, the Universal Service Obligation Fund (USOF) levy should be abolished.

Alternatively, the government may consider the suspension of the USO contribution of 5 per cent of adjusted gross revenue (AGR) till the existing USO corpus of approximately Rs80,000 crore is exhausted, the industry body noted.

“The telecom industry plays a pivotal role in this transition providing affordable connectivity and inclusivity.

Thus, reducing the TSPs’ levy burden and facilitating investment opportunities are not just an economic necessity, but a strategic investment for the country’s future,” said Lt Gen Dr SP Kochhar, Director General, Coai.