Mobile phone users may get exemption from telecom taxes

The life of mobile phone users comprises of a never-ending punishment of paying hefty taxes to the government but maybe things will change in the future.

The Senate Standing Committee on Information Technology has recommended granting a tax exemption for mobile phone users with only Rs. 500 or less balance in their account.

According to The Express Tribune, the committee directed the Federal Board of Revenue to submit the details regarding the revenue that was collected from the consumers via telecom taxes.

As we have previously reported, the government takes away billions from the unsuspecting mobile phone users in the name of telecom taxes. The Telecom companies have been pleading with the authorities to give a much-needed tax relief but to no end.

The telecom sector has added Rs 582.95 billion as tax revenue in the last 3 and a half years and even though the government has reduced the WHT from 14% to 12.5% and FED from 18.5% to 17%, the users still are paying a large amount to the government.

In most of the cases, the revenue is being generated from the people who do not fall into the taxable bracket and thus this new recommendation if accepted, will bring a peace of mind to many mobile phone users.

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