STAFF REPORT ISB: Telecommunication sector is one of the profitable sectors which contribute a sizeable share in economy of the country and especially with the opening up of 3G and 4G horizons it is booming at fast pace. The Federal Board of Revenue (FBR) recently leaked in a press statement that telecom companies in Pakistan have paid a large amount of Rs 4.6 billion in lieu of income taxes on different services in the past 5 years.
The officials further detailed the breakup of the taxes paid by telecom sector, “The combined percentage of tax levied from telecom sector only is mammoth 53% which breaks into 19.5% on Call and Voice services, 14% on withholding tax and the recent 19.5% taxes on mobile and fixed line internet connections”.
The internet taxation by the government on internet was brutally retaliated by telcos and other stakeholders. For the sustainable growth of IT and telecommunication sector flexible policies by MoIT have played a vital role in up surging of the sector during couple of years and more foreign entrants like YahSat have chipped in the Pakistani market.