New Delhi, 18 March 2026 – The Consumer Choice Center (CCC) cautions that proposals to introduce a per-gigabyte tax on mobile data risk slowing India’s digital progress by increasing the cost of connectivity for consumers while offering uncertain long-term fiscal gains.
India’s digital growth has been driven by low-cost mobile data, which has enabled better access to online education, digital markets, financial services, and new business opportunities. Levying a usage-based tax would significantly increase the cost of connectivity, putting additional pressure on low-income households and small businesses that bear high telecom-related costs.
Shrey Madaan, Indian Policy Associate at the Consumer Choice Center, said:
“India’s digital success has been built on accessibility and affordability. Taxing data consumption risks turning a crucial economic tool into recurring costs for daily users.”
Even a slight per-gigabyte charge would significantly affect low-income consumers and microenterprises that rely on stable internet connectivity for work, learning, and transactions. As digital services play a more central role in economic participation, high data costs could lead to slow adoption, thereby widening existing digital access barriers.
CCC notes that telecom services are already subject to GST. Adding a usage-based levy risks distorting consumer behaviour, discouraging uptake of data-driven services, and weakening growth in emerging sectors such as digital health, edtech, and online commerce.
“Fiscal measures should expand digital participation, not make connectivity less attainable,” Madaan added. “Policies that raise the cost of access ultimately reduce competition, innovation, and consumer welfare.”
The organisation also warned that usage-linked taxation could introduce uncertainty for telecom investment and digital startups that depend on affordable, high-volume data ecosystems.
CCC urges policymakers to prioritise revenue strategies that reinforce India’s digital expansion rather than constrain it.
“India’s competitive edge lies in widespread digital adoption,” Madaan concluded. “Sustaining that advantage requires policies that keep connectivity open, affordable, and driven by consumer demand.”
