Telecom Sector adds Rs 582.95 billion as Tax Revenue in 3.5 Years

telecom sector

It is no hidden secret, the telecom sector is one of the most taxed sectors in Pakistan. In the last three and a half years, it has contributed Rs. 582.95 billion to the national exchequer.

During the first two quarters of the fiscal year 2016-17, telecom sector contributed Rs. 53.76 billion. It contributed Rs. 243.28 billion in FY 2013-14, and Rs159.65 million in FY 2015-16

Also Read: Budget 2017-18: a little Tax relief for mobile phone users and telecom industry

According to the Pakistan Telecommunications Authority (PTA) officials, the above mentioned contributions include all of PTA’s receipts including initial and annual licence fees, annual radio frequency spectrum, spectrum administrative fee, universal service fund (USF) and research & development fund contributions, APC for USF, numbering charges and licence application fee.

Other revenue streams include customs duties, withholding tax (WHT) and other charges. With the inclusion of 3G/4G services in Pakistan, more people are adapting to the new applications and database services.

Also ReadTelecom industry received investment of $7 billion in just five years

Moreover, PTA has also witnessed a tremendous increase in the Information Technology remittances over the last decade where there is around 23% increase in compound annual growth rate (CAGR) and 97% total increase in the remittances.

The provision of better broadband services has also enabled an IT development in Pakistan. IT exports in the country have reached a $2.8 billion mark.

Also ReadPTA annual report says telecom sector contributed Rs. 31.5 bln to national exchequer

Moreover, the annual domestic income of the IT firms has also reached $500 million where the total income is estimated to be $3.3 billion.

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