The telecommunications industry urges the government to facilitate financing at lower interest rates; seeks reduction of liens
NEW DELHI: Telecommunications industry On Monday, he urged the government to facilitate the financing of telecommunications companies at lower interest rates to help them reduce capital costs.
Industry representatives met with officials from the telecommunications ministry to communicate their suggestions to help the indebted sector. The DoT, which has given time until Tuesday to send written recommendations, will compile these demands and send them to the Ministry of Finance for consideration in the next Budget.
According to a senior government official, most of the claims were made in similar lines to the previous ones, including the reduction of the rate and license fees of the Universal Service Obligation Fund (USOF).
The official added that one of the recommendations was related to the entry line credit.
In addition, the industry has also sought the facilitation of funds at lower interest rates for telecommunications companies, the elimination of GST in the license fee, spectrum use charges (SUC) and in the payment of the charges of spectrum, and the reimbursement of the tax credit accumulated tax, said the official.
They have also urged that telecommunications towers be included in the definition of plant and machinery for the tax credit for inputs, and a greater promotion of Make in India by creating a dedicated fund that can be used by the buyer of equipment telecommunications
One of the representatives present at the meeting said that the industry requested the creation of a working group with stakeholders from the Ministry of Telecommunications, the Telecommunications Regulatory Authority of India (Trai) and industry, which will work on the preparation of guidelines for Adopt the entry principle. Credit line.
The representative said that the telecommunications industry requires a lot of capital and needs to generate funds from national sources at affordable prices.
We ask the government to facilitate financing at a lower interest rate to invest more funds for updating, maintaining and expanding the network, said another representative.
Other recommendations included the reduction of the USOF contribution to 3 percent, and the license fee to 1 percent of adjusted gross income (AGR).
The industry also sought that the payment of the regulatory levy be exempt from taxes under GST.