Budget 2023: COAI seeks cut in licence fee & waiver in customs duty for 5G rollout

New Delhi: Mobile operators' association COAI has urged the government to announce a cut in license fee to 1 percent and has sought waiver of customs duty on network equipment for 5G rollout. COAI includes telecom operators like Reliance Jio, Bharti Airtel and Vodafone Idea as its members. In its Budget wish list submitted to the Finance Ministry, the Cellular Operators' Association of India (COAI) has also pushed for the abolition of the Universal Service Obligation Fund or USOF. The apex telecom association has urged the government for rationalisation of GST, reduction of license fee to 1 percent from 3 percent and waiver of customs duty on 5G network equipment.

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COAI suggested to remove GST on license fee, spectrum usage charges

During the pre-budget discussions held on Monday, COAI also sought the removal of GST on the licence fee, spectrum usage charges and payment of spectrum acquired in auctions. Other demands include a refund of theaccumulated input tax credit of GST (Rs 32,000 crore) and clarification regarding the availability of input tax credit on critical equipment installed on telecom towers.

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