Reduce tax to reduce call charges: Airtel CEO

NEW DELHI, INDIA: Bharti Airtel CEO and joint MD Manoj Kohli today said that there is enough room to further reduction in the call charges being offered by telecom players if the taxes are reduced by the government.

“On every rupee that a consumer spends on a call, 31 paise go as tax, the highest in the world. We have asked the government to reduce the tax. If the taxes are reduced, we can further reduce the call charge,” said Kohli.

He was speaking to media on the sidelines of a conference organized by All India Management Association here today.

Recently many operators have either reduced call charges or entered into the pulse billing bandwagon.

To increase the affordability of subscribers, TRAI has also indicated that it would come up with recommendations for pulse billing.

India's telecom stocks nosedived on Monday after Bharti's rival Reliance Communications Ltd. slashed call charges, raising concerns among investors that intensifying tariff war in India would negatively affect the companies' revenue. But Kohli said call charge reduction would not affect the revenue. “Instead, it is going to increase the revenue,” he added.