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TRAI recommends reduction in SUC, USO Fund levy and GST rate for improving financial health of telecom industry

June 30, 2017

The Telecom Regulatory Authority of India (TRAI) has suggested a reduction in the Universal Service Obligation Fund (USOF) levy to 3 per cent of adjusted gross revenue (AGR) from the existing 5 per cent and a reduction in goods and services tax (GST) rate to 8 per cent from the current 18 per cent as a few remedial measures to improve the financial health of the telecom sector.

As per TRAI, the reduction in the USOF levy, will bring down the licence fee component of operators to 6 per cent. Further, the regulator has also suggested that spectrum usage charge (SUC) of all airwaves that are auctioned should be 3 per cent of AGR, while the tenure for balance payments for auctioned spectrum should be 18 years as against the present 20 years.


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