Monday, March 19, 2012

Impact of budget on telecom- zee news.

Zeebiz Bureau

New Delhi: This Budget may burn a hole in your pocket if you are not careful with the mobile phone bills. Mobile phone bills are expected to rise following a 2 % hike in the service tax proposed in the Union Budget 2012 by the Finance Minister Pranab Mukherjee on Friday.

Giving a post budget reaction Sanjay Kapoor, CEO, Bharti Airtel, India & South Asia told Zeebiz.com that, “The telecom sector is already burdened with multiple and high tax levies which account for 30% of the telecom services revenue. The rise in Service Tax from 10% to 12% will increase cost of services to customers and also impact the P&L of telecom companies.”

The telecom service provider added that as a highly taxed industry, this announcement will certainly have a further impact on the consumer.

The new National Telecom Policy (NTP) which is likely to be announced in June is expected remove roaming charges, implement one nation full mobile number portability (MNP) etc.

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