Spectre of fall in revenue nixes telecom levy cut

TELCOS HAD ASKED THE GOVT TO REMOVE THE LICENCE FEE, INCLUDING THE USO FEE, PROSPECTIVELY

- Gulveen Aulakh

Indian telecom service providers' hopes to get relief from levies on adjusted gross revenue (AGR) might get dashed on the Union finance ministry's revenue concerns, according to two senior officials close to the discussions.

"It's under consideration, but (it is) unlikely that it will be accepted," one of the officials said on the condition of anonymity. "There's the issue of exchequer revenue getting affected."

Telcos had asked the government to remove the licence fee prospectively, including the universal service obligation (USO) fee, as a share of AGR, or reduce it from 8% to 0.5-1% of AGR. The measure was suggested after the Supreme Court in September dismissed telecom companies' review petition seeking corrections in the AGR calculations.