ISPs says tax breaks will boost broadband

13 Dec 2006

The Internet Service Providers’ Association of India (ISPAI) has asked the government to make broadband services exempt from service tax for five years in a bid to boost take-up, according to the Economic Times. ‘India, with a poor penetration of broadband, should not levy 12.24% service tax,’ the ISPAI said in a statement. According to figures from the Telecom Regulatory Authority of India (TRAI), India currently has less than two million high speed connections having failed to meet the targets set by the government’s broadband policy, which had envisaged three million subscriptions by the end of 2005. The ISPAI says radical action is need if the country is to meet the target of nine million broadband connections by the end of 2007.