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 the telecom consumers pay around 7 per cent for telecom services under the head of service charges, in addition to 29.5 percent taxes.
Broadband internet services, which were reported to be taxed this time, will remain un-taxed as well.
On the other hand, the government is expecting over $1.8 billion recovery from the telecom sector to meet its deficit. the government is expecting over $1 billion from the auction of 3G licences, while another $800 million are expects to be received from Etisalat against the purchase of 26 per cent shares of the PTCL.