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Our Bureau

New Delhi , Dec. 28

MOBILE tariffs could come down by as much as 30 per cent if the Government brought down the levies on telecom services, the Chairman and Group Managing Director, Bharti Enterprises, Mr Sunil Mittal, today said.

"I think there is a scope (for reduction) of about 30 per cent. As much as 15 per cent goes as licence fee, five per cent as wireless charges and nearly 10 per cent as access deficit charges (ADC). This is a 30 per cent cess that is sitting on top of service tax, which is another 10 per cent," Mr Mittal said on the sidelines of FICCI plenary session on `Vision of the new Economy' here.

Terming mobile telephony as "necessary essential services" and not a premium service, he said, "telecom is serving the nation. If that is so, it cannot be taxed in a five-star way. This 40 per cent levies must come down and what we can promise on behalf of the industry is that we will bring down the tariffs fully in line with whatever the Government gives us as a relief," he said.

"I was pleased to note that the Finance Minister mentioned yesterday that the telecom industry's tax structure is complex and needs to be simplified. We are hopeful that some rationalisation or simplification in the tax structure of the telecom industry will come," he added.

He said the actual reduction would depend on the quantum of reduction of the levies. "The service tax will never go away, but the balance 30 per cent, that goes to the Government for running telecom services, is certainly an opportunity," Mr Mittal said.

On his expectations from the ensuing spectrum policy, he said that spectrum was a crucial issue for the industry. "Additional spectrum will mean increase in services and an enhanced proliferation. It will be able to address the issues of coverage and capacity in dense areas. So spectrum should be given by the Government."

He said that the telecom department should get more spectrum released from defence authorities, railways and other users who were sitting on commercial spectrum and move them on to more efficient spectrum.

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