The Finance Ministry is looking into the resolution of tax disputes faced by telecom firms such as Nokia and Vodafone even as the new BJP government looks at pepping up manufacturing to boost the economy, Telecom Minister Ravi Shankar Prasad said on Tuesday.
Mr. Prasad, in his first formal press conference since taking over three weeks ago, said the government was working on expansion of telecom services, incentives for chip-making units in certain cities and the setting up of postal banks.
“The government has been repeatedly sharing its concern that retrospective taxation is something that needs to be avoided. As far as resolution is concerned, as I told you, the Finance Ministry is looking into it,” he said, referring to the tax disputes involving telecom firms. However, he refused to comment on specific tax issues.
8,000 mobile towers Mr. Prasad said the government planned to spend Rs.5,000 crore to set up about 8,000 mobile towers in the northeastern States and also monitor the deployment of mobile towers in nine naxal-infested States.
Mr. Prasad said he had asked the postal department to work on a proposal for setting up postal banks.
“We are going to start a new scheme of postal banking. In my priorities, I have selected postal bank also...Earlier postal department had applied for licence before RBI which is on hold as of now,” he said.
