Duty reduction to help local telecom firms

Telecom companies pay as much as 30 per cent of revenue in the form of various taxes and levies, compared to that in neighbouring countries where it is just over 5 per cent of revenues to cover duties. The finance minister’s offer in the Union Budget 2013 to reduce the overall duty will help local telecom firms which are facing pressure on profitability due to intense competition. However, most of the demands from the telecom industry haven’t fulfilled in the current budget. If the sector is granted infrastructure status, telecommunication companies will be able to raise funds on simple terms with added tax benefits. Mobile phone companies and the department of telecommunications wanted Finance Minister to address a slew of long-pending demands.