Union Budget 2023 Expectations: COAI seeks cut in licence fee, waiver in customs duty for 5G network gear

New Delhi: Mobile operators' association COAI has urged the government for a cut in license fee to 1 percent, and sought a waiver of customs duty on network equipment for the 5G rollout. In its Budget wishlist submitted to the finance ministry, the Cellular Operators Association of India (COAI) has also pushed for the abolition of the Universal Service Obligation Fund or USOF.

The apex telecom association has urged the government to rationalisation of GST, reduce of license fee to 1 percent from 3 percent, and waive customs duty on 5G network equipment. (Also Read: Union Budget 2023: PHDCCI suggests 2-year tax holiday for Covid-hit businesses)

During the pre-Budget discussions held on Monday, COAI also sought the removal of GST on the license fee, spectrum usage charges, and payment of spectrum acquired in auctions. (Also Read: Union Budget 2023: Cut personal income tax rates, CII suggests in pre-budget meeting with FM Sitharaman)

Other demands include a refund of an accumulated input tax credit of GST (Rs 32,000 crore) and clarification regarding the 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.