Budget wishlist: COAI seeks cut in licence fee; waiver in customs duty for 5G network gear

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Mobile operators' association COAI has urged the government for a cut in licence fee to 1 per cent, and sought waiver of customs duty on network equipment for 5G rollout.

In its Budget wishlist submitted to the finance ministry, the Cellular Operators' Association of India (COAI) has also pushed for abolition of the Universal Service Obligation Fund or USOF.

The apex telecom association has urged the government for rationalisation of GST, reduction of licence fee to 1 per cent from 3 per cent and waiver of customs duty on 5G network equipment.

During the pre-Budget discussions held on Monday, COAI also sought removal of GST on licence fee, spectrum usage charges and payment of spectrum acquired in auctions.

Other demands include refund of accumulated input tax credit of GST (Rs 32,000 crore) and clarification regarding availability of input tax credit on critical equipment installed on telecom towers.

COAI counts telecom operators like Reliance Jio, Bharti Airtel and Vodafone Idea as its members.