Any imposition of mobile data usage tax to be regressive, impact lower-income groups: Report
NEW DELHI: A potential imposition of a mobile data usage tax would be a regressive move and further cramp telecom operators’ headroom to take further tariff hikes, at a time when the industry is directly and indirectly taking measures to grow their average revenue per user (ARPU), according to analysts.
“In our view, a mobile data usage tax will not distinguish between productive and unproductive use and would be regressive since the impact will be borne disproportionately by lower-income groups, who may not have access to fixed broadband,” the homegrown brokerage said in a research note.
