High expectations from Union Budget

“On Budget 2023, there are indeed enthusiastic expectations from the telecom industry. With the 5G impetus, it is important for the Government to provide more benefits from the context of taxes and duties towards allowing more software and hardware imports into India. While the enormous Make in India initiative of the Government has been a success, however, it is important that towards effective and faster implementation of the 5G network and technology, more benefits are offered given that imports are nevertheless still high in the Telecom sector.

Further, the industry bodies have already represented to the Government, the requirement of reduction in license fees, including other tax-related concerns such as GST on spectrum charges and suspension of USO obligations. There is a high expectation from the Government to consider these requests, given the immense pressure to drive the Digital India campaign by the Government.

However, with significant Assembly elections including the Union election around the corner, it is intriguing to see whether the Budget focus will indeed be better benefits to industries, particularly the telecom sector.”

Tony Verghese, Partner, JSA