The Department of Telecom (DoT) is planning to seek a tax holiday for 10 years without a sunset clause from the Finance Ministry and make viability gap funding available for the telecom infrastructure sector, according to reports.
Telecom players including the service providers and struggling tower companies had sought for more fiscal benefits from the government over the last couple of months. The sector was formally given an infrastructure status in April this year but some demands of the industry around funding and investment remained unmet.
In the draft note prepared for the finance ministry, the DoT said that telecom plays a critical role to facilitate growth of the economy. DoT has recommended that a 100 per cent tax holiday for 10 years in a block of 20 years be given to the telecom industry.