Panel favours lowering tax on telecom sector

A Parliamentary Panel is favouring the slashing of taxes on telecom sector to fuel the growth of the sector and digital networks.

The Parliamentary Committee on Finance headed by M Veerappa Moily in its draft report on "Transformation Towards a Digital Economy" is learned to have said that reducing the tax not only help the  expansion of telecom networks but also in providing quality service to the  public.

The panel also wants telecom networks to be shared among all telecom firms and states to adopt "right to way" system for installing telecom infrastructure including towers and laying of cables.

Recently during the budget exercise, the Department of Telecom had recommended the finance ministry to lower GST on telecom services from the existing 18% to 12%.

Earlier Telecom firms have also urged the government to reduce GST on telecom services considering it as an essential service. The sector also pleaded the government to reduce the licence fee, cuts in universal service obligation and spectrum usage fee.

Lowering the levies on the telecom services would help bring the financial stability in the sector which is having Rs 8 lakh crore debt, said the telecom firms.