(MENAFN- KNN India)
New Delhi, Jan 21 (KNN) India's leading Telecom operators have urged the government to eliminate import duties on telecommunications equipment, arguing that current tariffs have failed to boost domestic manufacturing.
The Cellular Operators Association of India (COAI), representing major carriers Bharti Airtel, Reliance Jio, and Vodafone Idea, emphasised that the existing 20 per cent basic duty on advanced equipment has not stimulated local production of essential telecom infrastructure.
The industry body advocates for a temporary reduction of duties to zero, proposing a gradual increase as domestic manufacturing capabilities mature.
"Until high-quality equipment is available domestically at competitive prices, we urge the government to reduce customs duties for 4G and 5G network products, as well as other related items, to zero," stated COAI.
This appeal follows a similar request from the electronics manufacturing industry last month, which claimed that domestic manufacturers were leveraging high tariffs to price their products just below import costs.
This development comes amid government efforts to attract major global manufacturers like Ericsson to establish production facilities in India.
COAI Director General Lt. Gen. (Retd.) S.P. Kochhar emphasised the strategic importance of reducing financial burdens on telecom service providers, characterising such measures as investments in the nation's future.
Beyond import duties, COAI has recommended broader reforms in the telecom sector's fee structure. The organisation called for the abolition of the 5 per cent levy on adjusted gross revenue currently funding the Digital Bharat Nidhi (formerly Universal Service Obligation Fund) until the existing corpus of over Rs 86,000 Crore is utilised.
Additionally, they proposed reducing the License Fee to 1 per cent, a significant two-thirds reduction from current levels.
The industry body also sought clarification on service tax obligations related to AGR dues from the pre-GST period, requesting GST exemptions for these payments.
COAI emphasised the need for expedited processing of submissions to the Commissioner of Income Tax (Appeals), citing that delays impact operators' financial planning and cash flow management.
COAI reiterated its controversial proposal for large Internet companies to pay a network usage fee, given their significant contribution to network traffic.
However, this suggestion has faced opposition from digital rights activists over Net Neutrality concerns, and government officials have indicated that the proposal is not under serious consideration at present.
(KNN Bureau)
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