It has been revealed that telecom cellular businesses will lobby the government to reverse the rise in withholding tax on telecom services, which has a huge impact on the operators of roughly Rs. 18 billion per year.
It is seen by the industry as harmful to the economy’s digitalization effort and as undermining the aim of a “Digital Pakistan.” Sources in the cellular industry told the media that once the new ministers of information technology and finance take office, full budget recommendations will be shared.
In the previous budget, the previous administration set a strategy for the telecom sector, which included lowering the withholding tax from 12.5 percent to 10 percent, with the goal of lowering it to 8% by July 1, 2022.
However, in January 2022, the administration overturned its choices.
It has major ramifications for the telecom sector, according to sources, and the newly elected administration would be asked to decrease the withholding tax.
In Pakistan, only about 2.9 million persons, or one percent of the population, file income tax returns, out of a total population of 220 million.
Despite the fact that the majority of the country’s population has non-taxable income, they are subjected to withholding tax, which they are unable to claim.
“The new government should ensure consistency in policies to facilitate investment in the telecom sector”, the official added.
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