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HomeNewsTelecom NewsTelcos want duty exemption on import of 4G gear
Friday, 29 December 2017 06:32

Telcos want duty exemption on import of 4G gear

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Massive duty on imports of latest technologies and equipment increases the prices of the products and services. While the government is gearing up for 5G, the leading telcos have sought customs duty exemption on 4G gear - basic customs duty (BCD) exemption on 4G network gear to reduce overall 4G LTE network roll out costs, besides also seeking a cut in the withholding tax on discounts extended to prepaid distributors.

4G LTE network equipment includes base stations/e-Nodes, IT multimedia systems/soft switches, microwave networks, and associated packet network nodes.

These are parts of key recommendations in the upcoming Union Budget.

The Cellular Operators Association of India (COAI) said: “4G LTE network equipment should be exempted from 10.3% basic customs duty to reduce the cost of rolling out high-capacity data networks, which will be the arterial backbone of Digital India.” 

According to COAI director general Rajan Mathews, telecom operators have also sought similar “BCD exemption on front-ending connectivity devices used for newage technologies like internet of things (IoT), machine-to-machine (M2M) communication services and smart cities”. 

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