telecom sector

The government of Pakistan does not plan to introduce any additional tax on the telecom sector, according to Haroon Akhtar Khan, Special Assistant to Prime Minister on Revenue.

The government wants growth in Pakistan’s telecom sector and thus would not be imposing any new tax, Mr. Akhtar informed CEOs and other high-level representatives of the telecom companies on Tuesday.

Taxation is one of the key issues related to the telecom sector in the country where at the end of March, the telcos presented various proposals for the government’s consideration for the upcoming budget 2018-19 including reduction/exemption of Withholding Tax, decrease in customs duties & sales tax exemptions and a decrease in FED and GST.

Advisor to the Prime Minister on Finance, Dr. Miftah while chairing a meeting recently revealed that the government will consider the proposals presented for the telecom sector.

Time and time again, the telcos have demanded rationalization of taxes in Pakistan. Earlier this year, Senate Standing Committee for Information Technology and Telecommunication also showed concern over high taxes imposed on the telecom consumers and the deduction of advance income tax from the majority of subscribers who do not fall under the tax net.

In the last few years, Pakistanis have paid Rs. 200 billion in telecom taxes and still unknowingly are paying billions irrespective of the fact that majority of the telecom subscribers do not fall into the taxable bracket.

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