For every Rs 100 earned, Rs 35 goes to the govt: Bharti Airtel Chairman Sunil Mittal

Highlighting the high taxes Indian telcos pay to the government Airtel’s Chairman Sunil Mittal said that out of every Rs 100 they earn, Rs 35 goes to the government in form of levies. Sunil Mittal was addressing an investor’s call, on August 30, on the company’s fundraising plans.

“For every Rs 100 of revenue, Rs 35 goes in various forms of levies. We hope that as we step up and do our part, the government will also favourably look at some of the genuine demands of the industry, enabling a multiplier effect and positive outcome,” said Mittal as per media report.

Mittal also said that the Adjusted Gross Revenue (AGR) and spectrum payments further add to the debt burden of the company.

Future Roadmap

While speaking about Airtel’s ambitious Rs 21,000 crore fundraising plans, Mittal said that it will enable the company to shift to a higher gear and tap large opportunities by fast-tracking investments in the rollout of Fiber, 5G services, and data centre business. Mittal added that the entire telecom industry has been urging the Centre to look into some of the issues that are impeding continued investments in the sector and that the taxation remains high on the industry.

Bharti Airtel’s board, on August 29, gave the nod for raising up to Rs 21,000 crore through a rights issue, at a price of Rs 535 per share. As per Mittal’s estimates, by the end of FY22, the industry’s ARPUs (Average Revenue Per User) would hit Rs 200 per user per month and eventually move towards Rs 300.