Remove PAN requirement for mobile connection: COAI

The GSM operators have asked the government to remove Permanent Account Number (PAN) as a requirement to acquire mobile connection to increase tele-density in the rural areas and also sought rationalisation of multiple taxes and duties in the sector.

GSM operators' lobby Cellular Operators Association of India (COAI), in its budget wishlist, has said most of the rural customers do not have PAN and it may become difficult for them to take mobile connections.

"Many of these low-end and rural subscribers do not have a PAN number and the same hampers take-up of service. This goes against the government's own national tele-density objectives," it said.

With regards to prevailing taxes and duties in the telecom sector, the lobby said the taxes by the Centre in the form of annual licence fee, usage charges for spectrum, microwave access spectrum and microwave backbone and service tax totals up to 30 per cent of the operators' Adjusted Gross Revenues.

In addition, there are various state-level taxes like sales tax, Octroi, VAT, stamp duty, entry tax and taxes on towers, it added.

The COAI submitted that a uniform licence fee of 1 per cent of AGR (exclusive of the USO contribution of 5 per cent) across all segments of telecom be levied to reduce administrative problems and eliminate concerns of arbitrage or mis-reporting of revenues.

The body represents all the leading GSM operators like Airtel, Vodafone, Idea as well as the new operators.

COAI has also sought tax benefits for the sector at par with other infrastructure sectors to help further expansion of affordable services.