This Reliance Jio demand from government is ‘good news’ for Airtel, Vodafone

NEW DELHI: Reliance Jio has petitioned the government to reduce the taxation on the Indian telecom industry ahead of spectrum auctions, and said that overall levies need to be brought down as the sector is under “severe duress”.
Mathew Oommen, president of Jio, said that licence fee on telecom companies should be brought down to 1%, against the 8% now, while the Rs 35,000 crore worth of GST refunds and Rs 50,000 crore of money the government holds in USOF (Universal Services Obligation Fund) kitty should be used to reduce the stress of the industry.
“The sector needs attention, and there is no question about this… Also, there is a need to do away with multiple taxes that we are paying,” Oommen said when asked whether a relief package is required. Asked if the telecom sector needs reforms, he said, “I absolutely feel that the sector needs reforms.”