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Telecom sector taxes may come under scanner
November, 30th 2006

The Government will look into the taxation provisions governing the telecom sector as growth in the sector last year stood at 30 per cent, while Government's tax revenue from the sector grew by only 9 per cent.

"The growth in tax revenue from the telecom sector has not been as much as the growth in the sector. We will look into the matter," said Mr P.C. Jha, Member (Excise), Central Board for Excise and Customs.

Speaking at a conference organised by Assocham on the `Run Up to Budget 2007-08 Customs & Excise Issues', Mr Jha said that there is scope for further reduction in duties only if compliance level goes up.

"Considerable amount of money, which is supposed to come, is not coming to the Government. If compliance goes up there would be a case for reduced duty structure," he said.

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