(Economic Times via NewsEdge) Citing the country's poor broadband penetration, Indian ISPs have asked the government to exempt broadband services from levy of service tax for the next five years.
'India, with a poor penetration (0.16%) of broadband, should not levy 12.24% service tax (including education access),' the ISPs said in a statement sent to the government.
According to figures from the Telecom Regulatory Authority of India (TRAI), India currently has under 2 million broadband connections. The country has also failed to meet the targets set by the government's broadband policy, which had envisaged 3 million high-speed Internet connections by 2005.
The country is also unlikely to hit the target of 10 million broadband connections by 2007.
The Internet Service Providers' Association of India (ISPAI) has also sought a 100% depreciation for computers within the first year, and a similar depreciation on broadband customer premise equipment, including set-top boxes, modems, wireless radios and routers within the first year.
The same facility, ISPAI said, should be extended to self-employed professionals and individuals.
The association has also asked for tax holidays for organizations or even individuals who donate their PCs and other related equipment to institutions and schools, charitable organizations and local bodies while asking for a 100% exemption from Custom duty on goods imported by ISPs for providing broadband access.
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