India is planning to drop the windfall tax on telecom firms, which was imposed in the aftermath of the 2008 global financial crisis. The windfall tax on telecom firms has been a major cause for concern for the industry, given that it has severely impacted their ability to invest and expand services. A committee set up by India’s Department of Telecommunications is expected to recommend a phased reduction in the levy over two years, with a final cut before March 2020.
The Indian government has dropped the windfall tax on the telecom industry. The move comes after the Telecom Regulatory Authority of India (TRAI) had recommended that the government should not impose a windfall tax on telecom companies. This is a relief for telecom companies like Airtel, Vodafone, and Idea Cellular which have been struggling with high levels of debt and falling revenues.
The Indian government is set to drop the windfall tax on mobile phone imports. This is a move to boost the industry and help it grow faster. The windfall tax was introduced in 2016 with an aim to increase the domestic production of mobile phones. However, this has led to a shortage of handsets in the country, which in turn has boosted imports. The government hopes that removing the tax on mobile phone imports will encourage more players to enter the market and offer more variety of smartphones at competitive prices for Indian consumers.
