The Department of Telecommunications (DoT) is likely to introduce a single-tax regime in phases in order to bring down tariffs for telecom services. In the first phase, DoT will club various levies including licence fees and spectrum charges into a single central levy. In the second phase, the composite telecom tax, state levies, etc. will be rationalised and regrouped. In the third phase, all multiple levies will be removed and replaced by a unified levy. The first phase of the new tax regime is expected to be in place by the end of 2007.
