Trai for unifying spectrum levies via auction

The regulator has argued that the government should draw most of its levy from the players through the auction.

By: ENS Economic Bureau | New Delhi | Published: August 1, 2014 1:06 am

Telecom companies have been given another chance by sector regulator, Telecom Regulatory Authority of India, to unify all levies by the government on them.

Giving cross-country examples, the regulator has argued that the government should draw most of its levy from the players through the auction process instead of through separate charges.

“However it is also moot whether the government’s revenue considerations should be a factor in deciding upon the definitions of gross revenues, since it could be argued that any direct reductions in revenues could be offset by indirect accruals from the improved corporate performance…and the consumer benefit that may arise if reductions in levies are passed on in the form of lower retail tariffs”, chairman of the regulatory body Rahul Khullar has said.

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