Hemant Joshi, partner at Deloitte Haskins & Sells, has shared the company’s telecom budget expectations for the Indian mobile services industry.
He said the subscriber base has crossed the 100 crore mark in India making it the second largest market in terms of subscriber base.
However, stakeholders are yet to leverage the power of telecom to boost GDP, improve inclusion including financial inclusion for the under privileged and the rural sector, reduce digital divide, reduce wastage and leakages, improve efficiency – in transportation, energy, logistics, agriculture, water, etc. using Internet of Things (IoT), sensor technology, broadband, etc.
Telecom sector should be considered as the backbone of the digital world and should be given strategic importance in the budget.
Top budget recommendations for telecom industry
# Reduction in MAT rate
# Clarity on amortization on spectrum acquired through auction under Income Tax Act to avoid litigations
# Clarity on TDS deduction on sale of talk time to dealer
# Incentives for small mobile payments to make Indian economy cash less
# Fixing timelines for closure of litigations to reduce number of litigations and bringing in certainty
# Green Initiative incentives by way of weighted deductions and/or reduced rates for license fee, etc. for telecom operators / infrastructure providers use green technology for electricity generation
# Incentives in the form of tax holidays, weighted deductions for capital expenditures for private sector participation in digital India Initiative