Mobile Internet May Get Costlier in India as Government Studies Possible Data Usage Tax

New Delhi — March 14, 2026

Mobile internet services in India could become more expensive in the future as the government is reportedly exploring the possibility of introducing a tax on mobile data usage.

According to media reports, the government has asked the Department of Telecommunications (DoT) to conduct a study on whether a tax on mobile data consumption could be implemented and what model might be feasible.

The proposal reportedly surfaced during a recent review meeting of the telecom sector, where officials discussed potential options for additional revenue generation.

Proposal Suggests Possible Per-GB Data Tax

Reports suggest that one option being examined involves imposing a small tax per gigabyte (GB) of mobile data used.

If implemented, users could see an additional charge added each time mobile data is consumed. However, officials have not yet finalized any specific rate or policy framework.

According to estimates mentioned in reports, a per-GB data tax could potentially generate around ₹22,900 crore annually for the government.

Authorities have emphasized that no final decision has been taken yet, and the matter is currently under study.

India’s Data Usage Among the Highest Globally

India is known for having some of the lowest mobile data prices in the world, which has led to a significant surge in internet consumption.

Affordable data plans have fueled rapid growth in activities such as:

• Video streaming

• Social media usage

• Online gaming

• Short-video and reel platforms

As a result, mobile data consumption in India has increased sharply in recent years.

Users Already Pay GST on Telecom Services

Currently, telecom users in India already pay 18% Goods and Services Tax (GST) on mobile recharges and postpaid bills.

If a separate data usage tax were introduced in the future, it would likely become an additional charge beyond existing telecom taxes.

Industry observers say the proposal, if implemented, could have implications for internet affordability and digital consumption trends across the country.

For now, the government’s request to the telecom department is limited to studying the feasibility of such a tax, and no official policy announcement has been made.