COVID-19: Telecom sector seeks immediate lowering of regulatory levies

Tribune News Service
New Delhi, April 2

The telecom sector has sought Finance Minister Nirmala Sitharaman’s intervention for immediate lowering of regulatory levies in view of its critical role in dissemination of information on COVID-19.

The Cellular Operators Association of India (COAI) pointed out that despite the outbreak and spread of the coronavirus pandemic across the country, operators are playing a critical role in addressing the challenges faced by individuals, corporates, governance services, emergency and utility services.

However, the sector has been impacted by the Covid epidemic and lower cess was vital to ensure continuity of service.

The COAI has sought reduction in Spectrum Usage Charge (SUC) by three per cent for all operators and lowering of licence fee contribution (USOF contribution) from eight per cent to three per cent.

It has also sought immediate refund of the unutilised input tax credit or grant of soft loan to companies using GST input credit as collateral.

“Considering the sensitivity of this matter, we are hopeful that our submissions will merit your consideration and urgent support. This downturn will have an impact on all payments including those of employees, interest, loan repayments and taxes,” reasoned COAI Director General Rajan Mathews in a letter.

The COAI assured the government that the operators will continue to invest significantly in the telecom infrastructure.