The federal government has formed a committee to look at the proposed rise in telecom tax in the Mini-Budget.
According to sources, Syed Amin Ul Haq, the Federal Minister for Information Technology and Telecommunications, spoke out against a tax hike on the telecom sector during an emergency cabinet meeting on December 30, 2021.
A tax rise on the telecom sector, according to the Federal Minister, will have a negative impact on growth and investment.
According to sources, the cabinet decided to appoint a committee to study new tax ideas after the federal minister objected. Officials from the ministry said no such committee has been constituted yet, but the federal minister has spoken out against the taxes.
In the mini-budget, the federal government suggested a 17 percent sales tax on foreign phones worth more than $200.
The administration has also suggested raising the withholding tax for telecom subscribers from 10% to 15%. WHT was previously decreased from 12.5 percent to 10 percent in the 2021-22 budget, with a promise to reduce it to 8% in the next budget.
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