COAI Urges Telecom Reforms Ahead of Union Budget 2026-27

The Cellular Operators Association of India has proposed telecom regulatory reforms, such as reduced levies and special GST exemptions, to ease the sector's financial strain before the Union Budget 2026-27. These proposals aim to foster digital infrastructure expansion and support India's digital economic vision.

In a pre-Union Budget 2026-27 submission, the Cellular Operators Association of India (COAI) has requested significant regulatory and tax reforms to ease financial burdens on telecom operators. Their proposals include slashing regulatory levies and introducing GST adjustments, a move expected to aid digital infrastructure growth.

Specifically, COAI has advocated cutting the current License Fee from a 3% levy on Adjusted Gross Revenue and a 5% contribution to the Digital Bharat Nidhi. Lt Gen Dr SP Kochhar, Director General, COAI, highlighted the financial strain these fees place on operators, suggesting reductions to between 0.5% and 1% as an alternative.

On tax reform, COAI has requested the government to address input tax credit accumulations by either exempting services from GST or reducing GST rates on telecom payments under the Reverse Charge Mechanism. These measures, according to COAI, would balance revenue neutrality for the government while enhancing liquidity for operators.

(With inputs from agencies.)