World Bank asks govt to reduce taxes on telecom services
The govt imposes taxes, which include annual licence fees of 6-12%, spectrum charges of 25% and service taxes of 8-12%. Parents can now control kids' mobiles
By PTI |
NEW DELHI: The World Bank has asked the government to cut a slew of duties, including entertainment tax on broadband Internet connections in some states, on telecom services.
"The government imposes various fees, levies and taxes on telecom services, which include annual licence fees of 6-12 per cent, spectrum charges of 25 per cent and service taxes of 8-12 per cent. For an industry growing so quickly, these taxes and fees should be reduced," the World Bank said in a report.
The Bank said in a high-volume business, lower taxes create a win-win situation for everyone.
The government also imposes eight per cent tax on Internet service providers and reducing or waiving this tax would lower the cost of broadband access, the report said.
The World Bank in its report on 'Unleashing India's Innovation' said that many Indian states levy a 30 per cent entertainment tax on broadband subscriptions.
"The central government should encourage state governments to waive this tax," it said.
The report made out a case for expediting allocation of spectrum for wireless broadband roll-out.
It said that freeing up more radio spectrum for operators of voice and data services would reduce their roll-out costs in the rural areas.
The World Bank report suggested the subsidies be targeted for rural mobile and broadband services.
"The government imposes various fees, levies and taxes on telecom services, which include annual licence fees of 6-12 per cent, spectrum charges of 25 per cent and service taxes of 8-12 per cent. For an industry growing so quickly, these taxes and fees should be reduced," the World Bank said in a report.
The Bank said in a high-volume business, lower taxes create a win-win situation for everyone.
The government also imposes eight per cent tax on Internet service providers and reducing or waiving this tax would lower the cost of broadband access, the report said.
The World Bank in its report on 'Unleashing India's Innovation' said that many Indian states levy a 30 per cent entertainment tax on broadband subscriptions.
"The central government should encourage state governments to waive this tax," it said.
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The report made out a case for expediting allocation of spectrum for wireless broadband roll-out.
It said that freeing up more radio spectrum for operators of voice and data services would reduce their roll-out costs in the rural areas.
The World Bank report suggested the subsidies be targeted for rural mobile and broadband services.
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