Tag: taxes

Telecom sector concerned over heavy taxes on services

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article image STAFF REPORT ISB: The SDPI’s Study Group on Information Technology and Telecommunication has said that Rs. 40 billion annual withholding tax on telecom consumers has caused the diversion of Foreign Direct Investment to other regional countries. Speaking on the occasion, Vice-President of Telenor Aslam Hayat said that withholding tax is imposed on those consumers, who either do not fall in the tax bracket or do not file tax returns and ultimately cannot get refunds. He revealed that…Read More

Telecom sector reeling under excessive taxes: SDPI

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article image STAFF REPORT ISB: Censuring the exorbitant tax burden on telecom sector, the SDPI Study Group on ICT has concluded that Rs40 billion annual withholding tax on telecom consumers have brought the once lucrative sector on the verge of decline leading to drastic reduction in Foreign Direct Investment. Speaking on the occasion, Vice-President of Telenor Aslam Hayat said that withholding is imposed on those consumers, who either do not fall in the tax bracket or do not file tax returns and…Read More

Punjab imposes hefty taxes on 3G/4G internet users

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article image Staff Report ISB: The Government of Punjab has imposed a heavy 19.5% tax on 3G and 4G internet services. The taxes are applicable on 2Mbps and the broadband utility bills exceeding Rs.1500/month. The imposition of this tax will directly affect 56% of population of Pakistan that is internet consumer. The broadband industry response on this tax is vigorously unpleasant. A high amplitude wave of agony has meandered through the telecom service industry and is expected to cause copious…Read More

Punjab imposes hefty taxes on 3G/4G internet users

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article image Staff Report ISB: The Government of Punjab has imposed a heavy 19.5% tax on 3G and 4G internet services. The taxes are applicable on 2Mbps and the broadband utility bills exceeding Rs.1500/month. The imposition of this tax will directly affect 56% of population of Pakistan that is internet consumer. The broadband industry response on this tax is vigorously unpleasant. A high amplitude wave of agony has meandered through the telecom service industry and is expected to cause copious loss…Read More

Taxes, duties on IT, telecom sector to remain same

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article image STAFF REPORT IBD: The telecom and information technology industry will remain unchanged in the next financial year as the federal government has not touched in the finance bill for the year 2013-14 and all the taxes will likely to remain unchanged.Apparently there is no hope that the government would bring down the taxes ratio imposed on the telecom and IT sector, which has shown its strong reservations over the 19.5 per cent FED and 10 per cent WHT on telecom services.It is be noted here that…Read More

Cell phones, SIMs taxes revised upward

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article image STAFF REPORT IBD: The Federal Board of Revenue (FBR) has slapped tax on mobile phone and SIM which will fetch Rs. 150 on a phone having camera on front and rear side and a screen size of up to 4.2 inches or processor power less than 2 GHz.According to a notification issued by FBR, Rs. 500 tax would be imposed on the phone having a camera of 10 megapixels or higher, a touchscreen larger than 4.2 inches, and a dual-core processor.It also explained that BlackBerrys and phones running iOS, Android 2…Read More

Cell phones import down after new taxes

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STAFF REPORT IBD: Mobile phone handsets import posted about 50 per cent in April last after the Federal Board of Revenue (FBR) had imposed GST of Rs 1,000 to Rs 500 on each unit of smartphone and medium/low end handset.According to a fresh report of Pakistan Bureau of Statistics (PBS), the mobile phone imports recorded at Rs 3.819 billion or $38.84 million in April which were stood at Rs 7.576 billion or $77.25 million in March 2013.Local market dealers and retailers are of the view that the…Read More

Govt scrapes taxes on renewable energy

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article image STAFF REPORT IBD: The government has withdrawn all taxes and duties on from Renewable Energy and Energy Efficiency products apparently in order to promote renewable energy and energy efficiency in the country.The impact of this order can be judged that according to rough estimates, the prices will fall by 38 per cent and approximately 7-8 MW of solar alone will be imported resultantly adding 7-8 MW to much needed electricity demand.It is also worth mentioning that most of the beneficiaries will…Read More

Telecom customers paid Rs 39.82b taxes in H1FY12

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article image STAFF REPORT IBD: The telecom sector in Pakistan has become the biggest utility services consumed by customers of various income levels in different parts of the country as they paid Rs 39.828 billion as taxes on telephony services in the first half of current financial year 2011-12.According to the FBR statistics, it collected Rs 24.058 billion GST/FED from customers of different telephony services in July-December 2011.The telecom service is having the largest subscriber base in the country…Read More

Unjustified heavy taxes on telecom sector

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It still goes unnoticed that the telecom sector in Pakistan is paying 19.5 per cent as government taxes and this ratio is higher than that of other countries of the region. India and Bangladesh have respectively imposed 10.3 per cent and 15 per cent taxes on their telecom industries. While on the other hand, the Pakistani telecom operators are offering the lowest call rates in this region and telecom sector has added Rs 510bn to the national exchequer since 2004. There has been a strong…Read More