Bharati Airtel, India’s leading mobile player and telecom equipment manufacturer has sought duty reduction and financial incentives for promoting manufacturing of telecom equipment in India.
The telecom manufacturer has said “Indian manufacturers are hit by high taxes and duties on import and export of telecom equipment”, in a response to the pre-consultation paper by TRAI, the telecom regulator.
Bharati added that there should be no excise duty on telecom equipments and the GST rates for the telecom equipments should be waived off. Today, all equipments except handsets, attracts a 10% excise duty.
It is being demanded that the government must reimburse the R&D costs to domestic telecom firms. The state run ITI has also said that the government should also provide funds for native telecom R&D by ITI and CDOT for improvement of facilities.
Recently TRAI came up with a re consultation paper after the Chinese telecom equipment controversy asking how to increase the growth the telecom equipment manufacturing in India locally.
Demand for telecom equipments has crossed over trillion Rupees due to the growth in the wireless services market. However, growth of equipment production in India has not been proportionate to this growth in the wireless services market.
Vihaan Networks, an Indian telecom equipment manufacturer has stated that special incentives and tax concessions would help in promoting telecom products. An income tax holiday should be granted for these for 10 years and excise duties for manufacturing in India should be reimbursed.
Equipment producers have also told the government should encourage the research and development and offer soft loans and grants for these purposes.
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