Union Budget 2011 rings in no cheer for Telecom sector
India’s telecom sector is one of the world’s fastest growing sectors and is on the verge of becoming the world’s second largest telecom sector. The number of mobile subscribers stands at 752.19 mn in December 2010
March 04, 2011 / 17:57 IST
Pranab Mukherjee announced a slew of sops in Budget 2011 but none of them rung a bell with the telecom sector. The Finance Minister increased the Minimum Alternate Tax (MAT) to 18.5% from 18% last fiscal. This would increase the tax burden on most telecom companies.
The industry had hoped for an exemption of service tax on broadband. However, Mukherjee made no such announcement. Infact, the FM added more services to the tax net this budget in a bid to ensure a smooth transition toward GST.
This move would have significantly increased the penetration of household broadband connections that would help boost revenues for broadband service provider companies.India
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