Mobile Data Price Hike: After 18% GST, now Rs 1 per GB extra tax? Know the story of mobile data becoming expensive

News India Live, Digital Desk: The rapid increase in internet data consumption in India’s digital economy has presented a new source of earning to the government. According to the latest reports, the Central Government is seriously considering the proposal to impose ‘Data Usage Tax’. If this proposal is implemented, then using the internet in India could become very expensive. What is the new tax proposal? (The ₹1 per GB Plan)This new tax model has been discussed recently in a review meeting chaired by Prime Minister Narendra Modi:Proposed rate: The government is considering imposing a tax of ₹1 on every 1 GB of data consumed.Estimation of earnings: A total of 229 billion GB of data has been consumed in India in the financial year 2024-25. On this basis, the government can earn additional income of about ₹ 22,900 crore annually. Responsibility to DoT: The Department of Telecommunications (DoT) has been asked to check the feasibility of this proposal and submit its report by September 2026. 2 big arguments of the government behind imposing the tax. The government is considering bringing this tax not only for earning but also for some social and technological reforms: Control on digital addiction: Government It is believed that tax on data will help in reducing screen time, especially digital addiction among children and youth. 5G and Infrastructure Fund: Additional revenue can be used to increase broadband connectivity in rural areas and expand 5G network. What will be the impact on your mobile recharge? (Impact on Consumers)Currently we pay 18% GST on mobile recharge. After the introduction of the new tax, the impact may be something like this: Example: If your plan gives 1.5 GB data per day (total 42 GB) for 28 days, then the price of your plan may directly increase by ₹ 42 plus GST. Concern of telecom companies: Jio (Jio), Airtel (Airtel) and Vodafone-Idea (Vi) are already preparing to increase the tariff. The introduction of the new tax may impact their efforts to increase the ‘Average Revenue Per User’ (ARPU). Experts warn that this step may slow down the campaign of ‘Digital India’. Due to cost of internet access for people of low income group, services like education and banking are likely to be adversely affected.