If you are a heavy user of social media and OTT platforms, then get ready. Internet users—already burdened with rising recharge plan prices and 18% GST—are about to face another blow from the government! There is going to be a big change in internet prices. Discussions have intensified about imposing a separate tax on data in the telecom sector. If implemented, the move could add around ₹23,000 crore to the government’s coffers; However, this can completely spoil the budget of the common man. Let us know the complete information about this matter in detail.
According to media reports, the government is currently planning to impose tax on internet data. Some reports claim that this proposal was also discussed in a meeting chaired by Prime Minister Narendra Modi. If this proposal goes ahead, Internet users may have to pay a tax on every gigabyte (GB) of data used, which is sure to increase data prices.
Internet is still cheap in India
India is currently one of the countries where internet data is the cheapest. This cheapness is the main reason for such high use of Internet across the country. Now, the government wants to promote the use of this data for good. The government believes that taxing data will reduce its usage, which will also reduce “screen time”. However, it remains to be seen how the government will differentiate between data used for education and data used for entertainment. The Telecom Department has been asked to submit a report on this subject and has been given time till September for this. In its report, the Telecom Department will have to decide whether such a step is feasible or not.
Users may have to face a double blow
Former Chief Advisor, Telecom Regulatory Authority of India (TRAI), Satya N. Gupta has expressed concern over this proposal of the government. They argue that taxing data is not only impractical, but it could also disrupt digital services across the country. Gupta believes such a move could stifle digital innovation and jeopardize India’s global leadership position in the digital sector. It is worth noting that currently users have to pay 18% GST on mobile recharge; As a result, if data is taxed separately, users may face a double economic blow.
If tax is imposed, the government treasury will be filled
According to media reports, the government is now looking for new ways to earn revenue, apart from spectrum auction and licensing fees. Statistics show that in 2025, mobile data consumption in India will be around 229 billion GB. Given this huge volume, even if the government imposes a tax of just ₹1 on every GB, it can directly bring in a revenue of ₹22,900 crore to the exchequer. While on one hand this will definitely benefit the government exchequer, on the other hand it can also prove to be a big blow to internet users.
Currently, the government has directed the Department of Telecommunications to conduct a detailed study on the potential advantages and disadvantages of this proposal. The final decision on this matter will be taken only after the report is submitted. Till now, no official announcement has been made by the government on this subject.
