The telecommunications industry will seek a 10-year tax holiday and an additional depreciation of 15 per cent for telecom equipment in the forthcoming Union Budget for 2007-08.
The industry will also ask for an exemption of interconnect usage charges from service tax and franchisees of telecom companies like public call office operators from tax deducted at source.
Rationalisation of licence fee to a uniform rate of 6 per cent of average gross revenue, which differs from place to place, increase in depreciation of broadband customer premises equipment to 60 per cent, an additional depreciation of 15 per cent on telecom equipment (20 per cent at present) are the sops that the industry is seeking from the ministry of finance.