The Hindu Business Line : Budget `disappoints' telecom industry

The telecom industry has expressed disappointment with the Budget proposals, as it did not address the concerns raised by the operators, manufacturers and equipment vendors.

Mr Deepak Kapoor, Executive Director, PricewaterhouseCoopers, said: "I do not see any positive measures as far as telecom is concerned. This could have been a good opportunity for the Government to push forward with the reforms. But unfortunately none of the issues raised by the industry such as removing non telecom revenues from annual revenues for the purpose of licence fee calculations, bringing telecom at par with other infrastructure industries, removing double taxation which exists in the form of VAT and service tax has been looked at."

Mr S.C. Khanna, Secretary-General, Association of Unified Telecom Service Providers of India, said: "We are very disappointed with the Budget proposal as it has not accepted our request for reduction in licence fee. The increase in service tax will hurt the industry as telecom accounts for nearly 34 per cent of the total service tax collected. Telecom sector has been one of the highest taxed despite the fact that we offer the cheapest tariffs in the world."

Mr Amit Sharma, Country President, Motorola India, said: "The Budget is somewhat disappointing for the telecom sector because the issues of license fee burden has not been addressed. However, the push for rural telephony is welcome."

Mr Pankaj Mohindroo, President, Indian Cellular Association, said: "Our recommendations in promoting the mobile accessories, parts, components and after sales industry have not been received due attention. ICA requests the Finance Minister for immediate and urgent steps to phase out Central Sales Tax, which will give the Indian trade and economy a new velocity."

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