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Government likely to lower levy on USO Fund and extend tenure for payment of purchased spectrum

July 07, 2017

The government is planning to extend the tenure for payment of fee for auctioned airwaves and lower the universal services obligation (USO) levy among other measures to reduce the financial stress in the telecom sector.

According to the Department of Telecommunications (DoT), while telecom operators have requested to extend the duration of the deferred payment period by 10 years, the department is considering to increase it by five years. Besides increasing the payment tenure, the DoT is also planning to reduce the five per cent levy operators pay towards the USO Fund to reduce the licence fee component for operators without impacting the government’s revenues.

Earlier, the Telecom Regulatory Authority of India (TRAI) had suggested a reduction in the USO Fund levy and goods and services tax rate to 8 per cent from the current 18 per cent as remedial measures to improve the financial health of the telecom sector.


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