Cable tariffs across the country are set to go up with the Telecom Regulatory Authority of India on Friday clarifying that operators and multi-system operators can hike charges in view of the increase in service tax and the imposition of education cess in Budget.
"The government of India in the Finance Bill, 2004 has proposed to increase the service tax and levy an education cess. Since the rates of taxes are decided by the central and state governments, it would not be appropriate for the authority to put a ceiling on such charges," TRAI said.
There would be a 2.2 per cent increase due to the two per cent rise in service tax and a levy of 2 per cent education cess.
The regulator clarified that its price regulation, with effect from December 26, 2003, was exclusive of taxes 'and in this case also, the ceiling is on the charges payable, exclusive of taxes.'
